Forex trading candlestick pattern pdf
Have a plan to get out and minimize risk. In other words, know what the worst case scenario is before you even enter the trade. My analysis was wrong on direction and I lost the trade right? Well, it depends. But what happens if I get stopped out three days from now? Remember every day that passes that option spread I sold is getting cheaper and cheaper all other things being equal.
Stock options are used to create leverage and control risk. The strategies I learned from my mentors are profitable and simple once you get the hang of them. There are two types of options, calls and puts. There are also two things you can do with any option, either buy it or sell it. The most basic strategy for using options is called a covered call. The strategy is composed of two different positions. Yes, you can make money even when your stocks go down!
If this is your first time learning about options I know it's confusing. But trust me, trading options will allow you to start making money fast. By selling options you can start making money fast by creating a consistent monthly income that you can duplicate over and over.
Making money in trading is all about giving yourself an edge. Through various option selling strategies you can do exactly that. So who's making most of the money? That's right, option sellers. Option SellingThere are so many ways to make extra money. The following are my favorite defined risk option spreads. Notice a these few important points in this strategy. I know what my max risk is2. I have a plan for the entire trade3. My risk diminishes every day because of positive time decayI love free money making ideas that's why I wrote this page.
I encourage you to learn this strategy because it works. The only other part you need to understand to implement this strategy is technical analysis. You need to find stocks that you can anticipate direction through various technical analysis strategies. Than simply make trades that follow your guidelines and rules. Successful traders that are consistently making money fast no matter what direction the market is going all have one thing in common.
They know how to control risk. They know how to cut losses short and let profits run. Most importantly they will succeed in the future trading because they have a strategic trading plan that gives them an edge. Will this trader make money? Over the course of trades he will lose 60 of them and win The purpose of this example is to introduce why a plan is so important. If you want to make money fast you first need to control risk.
The large wick size indicates the false breakout that results in a trend reversal. Learn in detail Evening Doji Star Evening Doji Star is a three-candlestick pattern made up of a bullish candlestick, a Doji candle, and a bearish candlestick in series.
It is a bullish trend reversal candlestick pattern. Learn in detail Rising Three Methods Rising three methods is a trend continuation candlestick pattern that consists of five candlesticks on the price chart. It forms during trending market conditions and indicates that price will continue. Rising three methods candlestick pattern helps a trader make critical trade management decisions like either holding a specific trade or closing that trade instantly.
Learn in detail Falling Three Method Falling three methods is a trend continuation bearish candlestick pattern that consists of five candlesticks. It represents that the previous bearish trend will continue, decreasing the price. It is not a trend reversal candlestick pattern. Learn in detail Bullish Abandoned Baby A bullish abandoned baby is a trend reversal candlestick pattern that consists of a bullish candlestick, a Doji with a gap down, and a bearish candlestick.
This candlestick pattern rarely forms on the price chart. Usually, you will see this pattern in the price chart of stocks and indices. Learn in detail Bearish Abandoned Baby A bearish abandoned baby is a trend reversal candlestick pattern made up of a bearish candlestick, a bullish candlestick, and a Doji. A gap forms before and after the Doji candlestick, and Doji candlestick forms between bearish and bullish candlestick. More than one Doji candlesticks in an abandoned baby pattern can also form between bullish and bearish candlestick.
Learn in detail Bearish Piercing The bearish piercing pattern is a bearish trend reversal candlestick pattern that consists of two opposite color candlesticks with a price gap in between them. Learn in detail Three White Soldiers Three white soldiers is a bullish trend reversal candlestick pattern that consists of three bullish candlesticks making higher highs and high lows.
These candlesticks form in series with small wicks and shadows representing a massive momentum of sellers. Learn in detail Three Black Crows Three black crows is a bearish trend reversal candlestick pattern that consists of three big bearish candlesticks making lower lows and lower highs. Three black crows candlestick patterns should form at the top of the price uptrend to get a high winning rate.
The body of the candlestick is tiny as compared to the shadows. It is like a spinning top or long-legged Doji candlestick. Learn in detail Three Stars in the South The Three Stars in the south is a bullish reversal candlestick pattern made up of three bearish candlesticks. In this candlestick pattern, each candlestick forms within the range of the previous candlestick. The structure of this pattern also relates to the inside bar candlestick pattern , Learn in detail Deliberation Deliberation Candlestick pattern is a trend reversal candlestick pattern made of three consecutive bullish candlesticks in a proper sequence.
This candlestick pattern is also known as stalled candlestick pattern. Learn in detail Bearish Kicking Bearish kicking is a price trend reversal candlestick pattern consisting of two opposite-colored marubozu candlesticks with a gap between them. The bearish kicking candle is used to forecast an upcoming bearish trend in the market.
Learn in detail On Neck The On-neck pattern is a candlestick pattern in which after a long bearish candlestick, a small candlestick will with a gap down, and it will close near the opening price of the previous big bearish candlestick. It is a bearish trend continuation candlestick pattern Upside Tasuki Gap The upside Tasuki gap is a bullish trend continuation pattern that consists of three candlesticks and an upside gap.
Learn in detail Separating Lines The separating lines candlestick is a trend continuation pattern consisting of two opposite-colored candlesticks. The closing of the first candlestick will be equal to the opening price of the second candlestick. It indicates that the previous trend will continue. Learn in detail Downside Tasuki Gap The Downside Tasuki gap is a continuation candlestick pattern that consists of three candlesticks with a downside gap.
The downside gap will form within two bearish candlesticks. It is a bearish trend continuation pattern representing the seller is in control. Learn in detail Bearish Breakaway Bearish breakaway is a bearish reversal candlestick pattern that consists of five candlesticks and a gap zone. After forming this candlestick pattern, a bullish trend will turn into a bearish price trend. Learn in detail Bullish Kicker Bullish kicker candlestick is a bullish trend reversal candlestick pattern consisting of two opposite-colored candlesticks with a gap between them.
It will turn the bearish trend into a bullish price trend. Learn in detail Bullish mat hold Bullish mat hold is a trend continuation candlestick pattern consisting of five candles and a gap. It shows that the previous trend will continue. Bullish mat hold pattern primarily forms in stocks and indices.
Learn in detail Advance Block The advance block is a bearish reversal candlestick pattern that consists of three bullish candlesticks. It will turn the bullish price trend into a bearish trend.
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