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More Details Original Title. Other Editions 1. Friend Reviews. To see what your friends thought of this book, please sign up. To ask other readers questions about Forex Candlesticks Made Easy , please sign up. See 1 question about Forex Candlesticks Made Easy…. Lists with This Book.
This book is not yet featured on Listopia. Community Reviews. Showing Average rating 4. Rating details. More filters. Sort order. Start your review of Forex Candlesticks Made Easy. May 29, Madison Saclo rated it it was amazing. Many other books out there mainly focus on candlestick pattern names. If you are lucky, there may even be some bonus gibberish contents in order to make the book go beyond pages so that your money seems worthwhile.
He even has some tutorials within the e-book for you to practice your candlestick reading skills. Sep 23, Patrick Gross rated it really liked it. Candlesticks are one of the most misunderstood aspects of Forex trading, and this book was designed to teach you how to interpret them properly. This book is short informative and easy to read.
It appeals to new traders who wish to learn more about the basics of candlestick patterns. Even if you are a seasoned trader, you can expect Candlesticks are one of the most misunderstood aspects of Forex trading, and this book was designed to teach you how to interpret them properly.
Even if you are a seasoned trader, you can expect to learn something different too. Apr 21, Ryan Aiden rated it it was amazing. I am a beginner trade in this field of forex. Therefore no much experience in the field. I am however very happy that with such persons, I am able to make things happen in a better way.
I will keep earning even more as time goes by. Apr 16, Logan Alexander rated it really liked it. This is an amazing guide so quick and easy to read! The pieces of advice are simple and effective, I think even the beginners will find a lot there. Gopi Nath rated it liked it May 03, Jewell Alston rated it it was amazing Sep 18, Helena Hart rated it it was amazing Apr 26, Cherry Faulkner rated it it was amazing Nov 20, Patrick Robinson rated it really liked it Dec 08, Lester Tanner rated it really liked it Oct 31, Mami Kinys rated it it was amazing Apr 26, Alexander Garner rated it it was amazing Oct 25, Luba Evans rated it liked it Apr 22, Deloris Yang rated it really liked it Sep 30, Jessica Elizabeths rated it really liked it Apr 15, Jennifer S.
Dobrowitz rated it it was amazing Apr 26, Bob Grant rated it really liked it Apr 26, Justin Olive rated it it was amazing Jan 25, Jim Wolfe rated it it was amazing Apr 26, Kimberly Manishas rated it really liked it Apr 14, Litzy Natalies rated it really liked it Apr 14, I was inundated with candlestick pattern terms like morning star pattern, engulfing pattern, doji bar, hammer bar, hanging man bar and even three white soldiers pattern.
Whatever you have read, I assure you that I have read it and I have heard them before too. Frankly, as a trader, I never had to use those terms unless I am writing. Remember, our goal in trading is to capture profits and not to learn jargon! Be clear about that!
Chris helps you solve this problem by explaining to you the fundamental logic and the psychology behind the reading of candlesticks, so that you do not have to memorize the pattern names! He first teaches you the basic on how to read a candlestick bar. He then further explores the concept and the logic behind a solitude candlestick. Chris then went on to analyze with you how candlesticks can be a reflection of the market momentum. He even teaches you when candlestick analysis will fail and cannot be used, which many people are not even aware of!
Let me explain briefly. Anchor bar concept is where you have to spot and identify the correct bullish bar in an uptrend or a bearish bar in a downtrend. These anchors serve as demand support zone and supply resistance zone respectively. Chris uses his unique concept of anchor bars to determine the demand and supply zones. These zones are the price zones where once broken, the trend will most likely change.
He even went on to teach you how you can accurately set your stop loss orders. His way of setting stop loss orders was done in such a way that when it is hit, the trend will most likely change and there is no reason for you to hold on to your trade in any way. Chris anchor bar concept also helps you determine the precise buy points with low risk of immediate reversal against you while yielding high probability for wins.
Contents were deliberately blocked to protect his privacy and rights. Many other books out there mainly focus on candlestick pattern names. If you are lucky, there may even be some bonus gibberish contents in order to make the book go beyond pages so that your money seems worthwhile.
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And the best part is that it can be applied to any trading time frame! No single analysis tool is. Always protect your capital with well placed stop orders, just in case. Now that weve learned how to read clusters of candlesticks, lets apply this to an even wider scope: support and resistance levels.
Its an arbitrary line indicating the price s that the market sellers are unable to push below. Heres an example of a support line:. Can you see how prices were unable to penetrate below the yellow line? In this chart, the yellow circles indicate the times when the sellers tried to push prices further down. However, they were unsuccessful and so we say that the yellow line has become a support level. For example, when market prices hit the resistance level with a long top shadow, it might be a good idea to consider a Sell trade.
This is because resistance levels and long top shadows both indicate that prices are likely to go down. Both analysis tools are telling you the same thing. In general, the more analysis tools are in congruence about where prices are headed, the better. It typically forms at market bottoms. Can you see how prices first hit the support level, went up for a bit, and came back down to re-test the support level again before moving back up?
This candle pattern called engulfing because the real body of the later candle completely covers the real body of the previous candle. As you can see in the bullish engulfing reversal pattern, the real body of the bull candle completely covers the real body of the bear candle. Let me give you an example to explain my point: When market prices drop down to an established support level, chances are high that the buyers in the market will come in and attempt to push prices back up again.
However, this is not always the case, as prices do break below support levels every now and then. Sometimes, the buyers are simply too weak to prevent the market price from falling below a support level. However, when we see the bullish engulfing pattern form at such a critical price level, its an early indication that the buyers have come in strong and are likely to soon overwhelm the sellers.
Thats how we know that prices may to shoot up soon after we see a bullish engulfing pattern at an established support level. Here, we can see that prices hit a significant support level twice highlighted by the yellow circles. On the third try of the support level, we see a bullish engulfing reversal pattern highlighted by the red circle this means that prices are likely to keep moving up soon and as you can obviously tell, prices did go up afterwards.
The Bullish Engulfing and Piercing Line patterns indicate that prices are likely to bounce off a support level; and the Bearish Engulfing and Dark Cloud Cover patterns indicate that prices are likely to bounce off a resistance level. Compared to the engulfing patterns, these patterns are not as strong signals of price reversals because the real body of the later candle only covers more than half of the previous candle. Nonetheless, these 2 reversal patterns have also consistently provided me with good profits because of their reliability in predicting price reversals.
Go take a look at your trading charts and Im sure youll see many instances where these candle reversal patterns have accurately predicted future price movement in the market! If you see a reversal pattern in the middle of a ranging market, its not an indication of anything! For example, if you see a large bullish shaven candle hit a very strong resistance level, dont enter into a Buy trade its not a good idea to do that! Likewise, if you see a bullish engulfing pattern form on a resistance level, dont enter into a trade either!
When prices are nearing a strong resistance level, its a better idea to wait for a loss of upward momentum and a bearish engulfing pattern to form before you consider entering a Sell trade. In the next section, Ill show you some of the most reliable trading patterns to make money with Explosive formations! Imagine that youre holding a metal spring between your index finger and thumb. As you press the spring together, it becomes harder and harder to keep it compressed.
When you release either your index finger or thumb, the spring will jump out violently in the direction of where pressure was released. Very amusing, Chris. But whats this got to do with Forex trading? Its called a triangle because when you draw the support and resistance lines, you get the shape of a triangle. In this example, we see that prices actually hit the support and resistance lines 5 times. Can you see how prices fluctuated less and less over time inside the triangle?
This indicates a buildup of pressure, much like in the metal spring example I mentioned earlier. And when either the resistance or support level is broken, prices will shoot out in the direction of the break. In the above example, we see that prices did fall back into the triangle temporarily, before continuing with the uptrend. If youre trading on a triangle explosion, make sure your stop loss allowances are not too tight!
However, because channel formations typically take a longer time to build up compared to triangle formations , they usually yield larger profits. Trading on a channel formation breakout is a great way to make hundreds of pips in less than a week! Now Im going to reveal to you one of the biggest secrets of how to properly trade on breakouts.
But before you can fully appreciate the beauty of this trading technique, youll first need to understand how most people typically and wrongfully trade on breakouts. While this may seem like a logical thing to do, its actually a risky way to trade. What I mean by emotional trading is that there will be many traders who are letting the emotions of fear and greed guide their trading actions and it is during these times that the institutional traders aka. I wont go into too much detail regarding this because frankly, the only thing youd need to know is not to trade on the initial explosion.
The trick here is to first let the emotional trading subside, and wait for the market to settle down and THEN tell you whether the bulls or bears are taking over. Heres how to trade on an explosion: below we see a channel explosion on the downside on a 1-hour chart :. Once the explosion candle has completely formed and is shown to be a valid explosion i.
The fundamental idea behind this technique is to first LET the market tell us that the explosion is a valid one. Many other traders will be greedy and want to trade on the explosion immediately as it happens and those are the traders that that get eaten up by the sharks. Profit targets are a little tougher to estimate for maximum profits But here are four guidelines you may wish to follow when placing your profit targets:.
You now have two simple but incredibly powerful candlestick formations to trade with. These formations can be found in almost all time frames, so youll come across them pretty often. Keep in mind that the longer the time-frame these formations are found in, the more significant and reliable they are. For example, a triangle breakout on the daily chart is usually going to net you more pips than a triangle breakout on a 1- hour chart. Also, dont use these techniques on trading charts that are on a lower time frame than the 1-hour chart i.
Ive found the candlestick formations on these charts to be much less effective. Of course, this is a trick question well, sort of. The point Im trying to make is that sometimes you cant tell how bullish or bearish a candle is simply by looking at a single time frame. Lets now take a closer look at these 1-hour candles by zooming in to their respective minute time frames. Although they look exactly the same in the 1-hour time frame, when we look at the 15 minute chart they paint a completely different picture from each other!
Can you see the importance of zooming in to the shorter time frames? Shorter time frames can provide you with details that the longer time frames cant. A good habit to cultivate when trading is to occasionally look at the shorter time frames to support your trading decisions. Always wait for the candle to complete its formation before placing your trade. Many traders will get excited and scramble to enter into a Sell trade. In their excitement, they forget that the last candle is not completely formed yet!
And heres what happens when the hour is up, and the candle is fully formed prices shot right back up into the channel again. This was a false break! If those earlier traders had waited for the hour to be up before trading, they wouldnt have been caught in such an unpleasant situation. Dont be like those poor traders learn how to protect yourself against these unnecessary losses! Here's A General Rule Of Thumb Only trade on breakouts after a candle closes above a resistance level, or below a support level.
This is also one of the reasons why I advise you never to trade on the initial explosion of the triangle or channel formation. You now have access to all the candle analysis techniques that I personally use to profit from the Forex market. These are concepts have been carefully chosen and explained to give you the best chance of profiting so please follow them carefully!
What about all the other candlestick formations? I know, I know youve probably heard about the head and shoulders or some other more commonly-known candlestick formation The reason why I didn't discuss them here is because Ive found them to be rather unreliable in the Forex market. You see, compared to the other financial markets, price movement in the Forex market is much more volatile.
What this means is that only the most simple and dramatic candlestick formations will have a significant impact. If you know how to trade with the head and shoulders formation, then please go ahead Im not saying that its unprofitable to trade with I just prefer to ignore it because I feel there is simply too much random price movement in the Forex market for such a complex formation to hold any particular significance.
I hope youve gained some valuable insights that will give your trading career a big boost! If you have any questions or problems, just drop me an email at: chris forexcandlesticksmadeeasy. Unauthorised resell or copying of this material is unlawful. A Note from the Author. Over the past weeks I've been receiving requests from many of my subscribers to share some of my candlestick analysis techniques I sincerely value your opinions and would like to share with you as much as I can about the trading techniques that have been profitable for me.
As usual, please don't hesitate to send me any of your questions or comments regarding any of my reports. I'd love to hear what you think of them! This report was written with the Forex market in mind. Although Japanese candlesticks are often used as an analysis tool in many other trading markets, the concepts that I'll reveal in Section 2 and 3 of this report are specifically with reference to the currency market. This being said, I will also teach you how to read and understand the basic principles behind candlesticks in Section 1.
This is a universal concept that can be applied to other financial markets. If you think you already understand candlestick basics, please think again. Candlesticks reveal more information than just the opening and closing prices of the market. Candlesticks are graphical representations of market price movements within a specified time period.
A candlestick may represent price movement that occurred in the last 5 minutes; 15 minutes; 30 minutes; 1 hour; 4 hours; 1 day; 1 week; or 1 month for example. This is what a candlestick looks like. The thick portion is known as the real body, and the thin parts are known as the shadow. Got it? Now let's now see what the real body and shadow can tell us about how market prices have moved.
Let's assume the the candlestick to the right represents price movement in a 1 hour period. The 'open' would be the market price at the beginning of the 1 hour. The 'close' is the market price at the end of the 1 hour. The 'high' and 'low' are the highest and lowest prices that were traded within that 1 hour, respectively.
You may have wondered at this point why the candlestick is green in colour. Most trading platforms today will allow you the option to change the colour of the candlesticks that you see on your charts, so it doesn't really matter.
For the rest of this report, let's use green to represent a bullish candlestick, and red to represent a bearish candlestick. A bullish candlestick represents market prices that are moving up. If you look back at the 1 hour candlestick in the previous page , you'll see that the 'close' end price is higher than the 'open' beginning price.
This means that in that 1 hour, the market has moved from the 'open' price, up to the 'close' price. Notice that a bearish candlestick is the opposite of a bullish candlestick: it shows how prices have moved down within the time frame that the candlestick represents. Bearish candlesticks are usually represented by the colour red. Occasionally, you'll come across candlesticks that have no shadows, or have no real body. These are very special candlesticks that can provide you with crucial information about here market price may be headed.
I will discuss more about these special candlesticks next. Section 2 The Power of Momentum. This is potentially the most important concept in Forex chart analysis. If there's only one thing you can learn from candlestick analysis, I recommend that you learn about how to read momentum. Using what you've just learned about how to read candlesticks, take a moment to think about your answer. Turn to the next page when you've decided on your answer Did you guess candlestick 2?
So why does candlestick 2 show a stronger upward momentum? Although both candlesticks have the same high-low price range, candlestick 2 shows no hesitation in upward price movement. Also, candlestick 2 shows a higher closing price. Can you see how candlestick 2 shows the price moving straight up? This is an indication of a strong upward momentum. Candlestick 2 is often called a bullish shaven candle.
The opposite of a bullish shaven candle is called a bearish shaven candle. Let's now look at an example of how shaven candles can help Here, we see a bearish shaven candle that is soon followed by a further drop in prices. If you sold the market after seeing this bearish shaven candle, you would have made money!
Now, if you open up your trading charts and take a look, you'll be able to find many similar instances where a bearish or bullish shaven candle is usually followed by a subsequent drop or rise in prices. Go ahead and check out your trading charts now. It's important that you're convinced of the strong influence of shaven candlesticks on furture price direction. Turn over the page when you're ready All right Chris, I'm convinced.
But why are shaven candles so accurate in predicting the direction of future prices? The answer is because shaven candles indicate strong momentum in price movements. In the above bearish shaven example, there was no shadow because the sellers in the market completely overwhelmed the buyers; the buyers couldn't drive the price up at all!
The sellers were too strong. And once the buyers are temporarily defeated, prices will continue to free-fall until the buyers can regain their strength and start pushing prices back up again. Wow that's great! Sometimes, shaven candles are immediately followed by prices moving in the opposite direction of them For example, the moment the U.
GDP figures are revealed to be unexpectedly low, flocks of news traders all over the world will immediately enter into a SELL trade for the U. This will likely result in a huge bearish shaven candle on the trading chart.
However, this bearish shaven candle will often be immediately followed by a strong bullish candle because the news traders will begin to take their profits by exiting their positions thus driving price up again. So, if you come across a shaven candle during periods when important economic news is announced, do yourself a favour and ignore it.
Shaven candles are good predictors of future price direction only when they have been 'naturally' formed by normal everyday trading activity. Of course, shaven candles are not the only indicators of strong momentum in the market. There are several other ways to identify the strength of market price movements. However, shaven candles are one of the most reliable indicators that I've come across. I hope you now have a good foundation of how momentum works Likewise, the larger a shaven candle, the more likely and further prices will continue move in the direction of that candle.
However, you should ignore any shaven candles on the charts during times when important economic news is announced. As with all other trading indicators and analysis tools, you should never, ever, ever EVER rely solely on candlestick analysis to trade. This means that you shouldn't just blindly enter into a BUY trade the moment you see a bullish shaven candle. Candlestick analysis is meant only to be one criteria out of the many trading criteria you should have in your own trading system.
Use candlestick analysis together with your technical indicators. If you see a bullish shaven candle, but your other technical indicators tell you not to enter into a BUY trade, then please don't buy! In the next section, I'll discuss about markets with weakening momentum Section 3: When Momentum Is Lost.
When momentum is strong in the market, it's a good time to enter into a trade. But when do you exit the trade? The answer is when that momentum begins to slow down. And as you might have guessed, the candlestick that best shows the lack of momentum is the Doji:.
On the trading charts, a Doji looks like a cross because the open price is the same as the close price; therefore, this candlestick has no real body at all. A Doji can represent either one of two things: 1. Buyers and sellers are equally strong 2. Indecision in the market. Buyers and sellers are equally strong When the buyers and sellers of the market are fiercely fighting each other, prices may not fluctuate much. This is because both sides are equally strong at that point in time, and are caught in a deadlock.
However, the moment one of the sides starts to lose strength, the other side will usually push prices strongly in their direction. Indecision in the market Sometimes when the market is behaving unpredictably, traders in the market don't know whether to buy or sell. This results in a Doji candlestick on the charts because neither buyers nor sellers are strong How to trade using a Doji candlestick Many Forex books and websites claim that a Doji candlestick indicates a change in market direction.
Now that you understand the reasons for the formation of a Doji, do you agree with what these books and websites say? Not necessarily, right? Whether or not a Doji indicates a possible change in market direction depends on the reason for the formation of the Doji.
By now, you should know that long shaven candles signify strong price momentum in the market, and that strong momentum is a good indicator of the direction of future price movements. You also now know that a good time to exit your 'in-the-money' trades is when loss of momentum is observed in the market.
A Doji signifies a loss in momentum, although this does not mean that prices will definitely reverse in the opposite direction. Never try to predict trend reversals and enter the market based on a single Doji candlestick! If you have any questions or comments regarding this report, just drop me a quick Email at: Chris forexcandlesticksmadeeasy.
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Flag for Inappropriate Content. Download now. Related titles. Carousel Previous Carousel Next. Jump to Page. Search inside document. Disclaimer This report is designed to provide helpful advice regarding the subject matter s covered. Congratulations once again for making the right choice. To Your Trading Success! Solitary candlesticks Well begin by first discussing candlesticks that have a special significance on their own. Relative candlesticks Next, well look at how neighbouring candles can give you a better picture of the recent market price action.
Significant price formations Once youve understood the underlying mechanics behind relative candlestick analysis, its time to expand our scope to even more significant formations; this time in relation to crucial price levels in the market. Explosive formations The last of the core concepts, this section will provide you with 2 incredibly reliable candle formations that have time and time again provided me with consistent profits.
Sounds good? I hope youre as excited about this as I am So let's begin! Done reading? One more thing about the Doji before we move on you may have noticed that the hammer and hanging man candlesticks look similar to it: After reading the report, you should know by now that these three candles mean either one of two things: lack of momentum, or indecision in the market.
Lets move on to the next important candle characteristic: Long shadows. Thats about all there is to it. Pretty simple, huh? Let's talk about multiple shadows next Lets look at an example Here, we see multiple shadows trying to penetrate a support level. Again, you might want to open up our trading charts to see if you can find more examples. Allow me to illustrate this with a question: If we look at this single candlestick, we might say that the market is bullish. However, if we take a step back and look at the candle before it then we might come to a completely different conclusion.
Heres how Reading candle patterns If youve been following me so far, this will be easy for you to understand. What does this situation tell you about market prices? Lets examine why: Candles 1 and 2 indicate that the market is on a downtrend. I will go through this candle pattern in further detail later on Of course, you dont have to memorize this candle pattern Heres what I mean: In the candle formation to the right, we might be fooled into thinking that this is the start of a price reversal after all, we can see the strong momentum of the bear candle, right?
But in this case, a large bear candle doesnt necessarily mean that the sellers are getting stronger Due to the strong upward trend of the first three bull candles, we must now take into consideration the possibility of buyers who are now taking their profits i.
A stronger signal for a price reversal would be this: See how the close price for the last bear candle is lower than the open price of the first bull candle? Now lets go through a quick analysis example to see if youve been following me so far: Recent price action indicates a mostly ranging market. What happened next? The strong downward momentum indicates a good sell signal. But we should be careful because the downward momentum is slowing down We know that the downward momentum is slowing down because: 1.
Prices might just come down again! This engulfing pattern is referred to as bullish engulfing and appears at the end of the downtrend. Another pattern, bearish engulfing, appears at the uptrend conclusion. Bearish reversal pattern in which the first candlestick progresses with the uptrend is an evening star. The second candlestick has a body that is narrow and links up. Closing below midpoint of first candlestick is made by the third candlestick. A long black or red bodied first candlestick is present in bullish reversal pattern that we call morning star.
It is followed by a short candlestick that has linked lower; this is completed with long white or green candlestick that closes higher than the midpoint of first candlestick. A trend may occur during a movement downwards in candlestick. The formation of a white candlestick or bullish candlestick closely follows a stretch of bearish candlesticks. At such, the price at opening is very low compared to the closing price and becomes the low of the day.
The result is long white candlestick that has an upper shadow that is short and lacks in lower shadow. This Bullish Belt Hold mostly indicates a reverse in the sentiments of the investor from bearish to bullish. As a result of the trend being a common occurrence, it is very rarely seen as useful. It is usually incorrect in the prediction of future prices of shares.
Charting patterns of candlesticks more than two days of doing trade should be given a consideration as you make predictions on the trends. Picture this case scenario, you are trading with the uptrend and your technical indicators indicate to you that the prices are likely to continue moving up.
A definite nice feeling about this will almost certainly get to you. And somehow somewhere along the course, the market begins to make movement in the exact opposite direction. How frustrating would that be? You will be reduced to just as the prices move nearer and nearer to your stop-loss level. As in all aspects of business the world over, disciplined is a virtue that you should hold high. Keep calm and watch as you wait. You definitely know what that implies.
The trading platform tells you the triggering of your stop-loss order. Why you? Why does it keep on screwing you? Over the next eight hours or so, you watch hardly believing your eyes as the market rises 90 pips in the initial direction. You were not wrong in deciding not to get stopped out so soon. As you would learn from this, the identification of the trend in prices is not enough.
What you really need is the knowledge on the perfect timing to enter the market. Which other review would let you in on this very effective candlestick techniques? I have not seen any reviews on such honestly. This is neither a scam nor a hype. But of course you may tend to think that way from how good it really is. Making cash like a hobby. The creation of Christopher Lee. Want to make accumulations of profits in the trading account you own?
Here are a sure proven ways. Let me start off by telling you that profitable Forex Trading is very simple. The technical indicators that you usually use will only inform you the approximate happenings in the market. Well, they may be helpful but the limitation is that pinpointing exactly when to enter a trade is a challenge. When it comes to informing on when to exit trades, likewise they are very unreliable. The definite indicator of how the market is doing at this time is candlesticks.
They contain the most current information regarding the market. Why should you continue listening to some currency analysts when the answer on market progress is clearly on the trading chart?