FX Chart Patterns

[SAINT]

Hi

Just started forex trading on a 5k demo account and made 350 pips on first 5 trades selling $.
Used Fundamentals and then charts to find entries..

Does anyone use candlesticks on forex. How do you implement this etc.

Any other patterns which may be of use. I studied reversals etc. before. Are these useful?
What timeframes?

many thanks

Saint

 

[FetteredChinos]

best candlestick tactic, IMHO is the narrow range bar following a long bar in either direction. think it is called a harami.

trade a break of this narrow bar. usually yields a fair stab at a sizeable profit on anything upwards of 5 min charts.

remember exit is more important. use CCI or RSI for divergance exits is a fairly simple method. keeps you in trades for longer.

FC

 

[ChowClown]

...study 'Dojis' too, great reversal indicators - I tend to use them from the 15m outwards. I agree with FC, other indicators might help you with entries/exits - you could add MACD divergence to the list too.

I'm a recent convert to pure price action and watching how candles form and what patterns emerge from key support/resistance areas, round numbers (eg Cable 1.8000; 1.8100 etc) and fibonacci retracement levels, will be time well spent.

Good luck.

 

[SAINT]

Thanks for your help guys.

 

[Roberto]

I agree with the above posts, which should be helpful to you. Personally I also spend quite a lot of time looking through currencies on 15-minute and 10-minute charts, looking for candlestick reversal patterns, and then use ultra-short digital forex options at BetOnMarkets.com to trade them. There are digital options as short as 10 minutes, at prices from about £5 to about £5000. These are essentially fixed odds bets at "evens" (less 2% commission), and it's possible to learn to get about 80% of them right, which can work out very profitable over the course of the day, and without any drawdowns worth talking about. Just "something different" to be aware of