Forex trading can be very fast. Actually, most trading in foreign exchange is day trading, even though much of it is conducted at night, depending on where "night" is, in relation to the location of the trader. Japanese Candlestick on-the-spot analysis is very helpful in trading the Forex because the ability of the Candlesticks to reveal the underlying psychology of traders, as a group, extends with equal efficiency and accuracy across all time frames, even down to the one-minute bars. Depending on the gearing which the individual trader uses, real money can be won or lost very quickly.
The usual Candlestick reversal patterns apply across the board in Candlestick Forex. Reversal formations such as the Bearish Engulfing, the Inverted Hammer, and the Piercing pattern possess the same ability to forecast future moves in one-, ten-, and thirty-minute time spans as they do in the monthly or weekly time frames. One can view a typical Candlestick chart and, without being told, might not be able to guess the time span which the chart reflects, because the patterns are universal and apply across the board.
The Candlesticks display price action in picture form, not in line or graph form. The basis of the presentation is the old bar chart. Nothing is taken away; the process is additive. What the Candles do differently is to expand or "bulge out" the area in the bar chart which lies between the opening price and the closing price. The picture simply makes more visible the same information which the bar chart contains. The effect is most pronounced when trading, especially Forex trading, is being viewed in real time. The pictures make it easy to decipher the mood of the traders at any time within any time span which the computer operator may select.
When seen in real time, Candlestick Forex is, indeed, every bit like a movie. It is fascinating to watch, almost mesmerizing at times to the casual observer, but hopefully not to the trader whose money is at risk.
Candlesticks and Forex fit naturally together. Everyone who intends to trade Forex should learn the Candlesticks first.
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