the candle is strong and covers a lot of price distance, I categorise it as a preceding trend for the purposes of reversal trading. It can be an SMA (simple moving average) or it can be and exponential moving average (EMA). I will show you a simple trading method to help you hang on but you must commit to letting these trades play out! In trading, highs and lows are very important. I take over 70 of my trades from my smartphone. If you have more than 8 you probably placed too many. Step 3: what IS THE sell OR BUY signal TO look FOR? Although a larger mother bar on an inside bar setup is not really what I like to see, you can sometimes trade inside bars with larger mother bars, and if you do, you will probably want to place your stop loss near the mother bar. But that is not how candlesticks work. Normally people say that a spinning top means a reversal is imminent, which can be true.
The Truth About Candlestick Analysis When Forex traders first start out they usually learn about candlesticks. If you dont know the basics, thats fine, I got you covered! Support and resistance placements still need to be done by a person. The core rule of my price action strategy is to keep trading simple. If you were to enter reversal trades trik scalping forex profit based solely on indecision, it wouldnt work out too well What about when a bullish preceding trend heads into an area of resistance (sell area) or a bearish trend into support (buy area) and indecision forms?