How Do You Read Japanese Candlestick Patterns? - Candle Setups Strategy
Candles patterns have different pattern formations that you can learn and use them in trading and identifying setups based on the candlesticks patterns guide explained below.
The guides below explain how to identify these candles patterns & how to trade currencies with them.
Doji Forex Trading Candlesticks Signals
Doji is a candlesticks pattern with the same opening and closing price. There are various types of doji candlesticks pattern which form on Forex charts.
following examples explain various patterns of the doji candle:
Long legged doji candles setup has long upper & lower shadows with opening and closing price at the middle. When Long legged doji appears on a chart it shows indecision between currency traders, buyers and the sellers.
Shown Below is example screenshot image of the Long Legged Doji FX candles setup
Doji Pattern - Doji Forex Candles Signals
Doji Chart Pattern - Doji FX Candles Signals
Marubozu Forex Trading Candlesticks Signals
Marubozu candles pattern are long candles that have no upper or lower shadows, Like the examples shown below.
Marubozu Candles - Marubozu Forex Candlesticks Signals
Marubozu candles setup are continuing forex candle patterns that show price is going to continue in same direction as that of the marubozu candlestick. The marubozu candlesticks setup can be white/blue or Black/red depending on direction of the market trend.
Spinning Tops Candles Signals
Spinning tops candles setup have a small body with long upper and lower shadows. These spinning top candles are referred to by this term because these candlesticks formations are similar to spinning top on a matchstick.
The upper and lower shadows of the spinning top candlesticks setup are longer than the body. The example below shows the spinning top candles pattern. You can look for pattern in your MT4 Software charts. The example below shows a screen-shot to help traders when it comes to learning & understanding these forex candles setup.
How Do I Read Forex Candle Charts - Spinning Tops Candlesticks Signals
Colour of the spinning top candle candles setup isn't important, this formation shows indecision between buyers and sellers in the market. When these forex setups appear at the top of a trend or at the bottom of trend it may signify that the trend is coming to an end & it may soon reverse & start moving the opposite direction. However, it's better to wait for confirmation signals that direction of a currency has reversed before taking the signal from the candles setup formation.
Hammer Candle-stick Setup vs Hanging Man Candle Setup Signals
Hammer Candle-stick Setup and Hanging Man Candle Setup candlesticks look alike but hammer is bullish reversal candles setup and hanging man is a bearish reversal candles setup.
Hammer Candlestick Pattern & Hanging Man Candle Setup Candles - Candlesticks Signals
Hammer Trading Candlesticks Signals
Hammer candles setup is a potentially bullish forex candle pattern that forms during a downtrend. It's named so because the market is hammering out a bottom.
Hanging Man Forex Trading Candlesticks Signals
This hanging man candles setup is a potentially bearish forex reversal signal which forms during a uptrend. It's named so because it resembles a man hanging on a noose up high.
Hanging Man Candle Setup - Candlesticks Signals
Inverted Hammer Trading Candlesticks Signals
This is a bullish reversal candles setup. It occurs at the bottom of a trend.
Inverted hammer candles setup occurs at the bottom of a downtrend & indicates possibility of a market reversal of the downward Forex trend.
Inverted Hammer Candle-stick Setup - Candlesticks Signals
Shooting Star Trading Candlesticks Signals
Shooting Star is a bearish reversal candlesticks setup. It forms at the top of a market trend.
Shooting Star candles setup occur at the top of an uptrend in the market where the open price is same as the low & price then rallied up but was pushed back downward to close at near the open.
Shooting Star Candle-stick - Candles Signals
Piercing Line Forex Trading Candlesticks Signals
Piercing line candlestick setup is a long black body followed by a long white body candlestick.
White body pierces the midpoint of the prior black body.
This Piercing Line fx candles setup is a bullish reversal candlesticks setup that occurs at the bottom of a market downtrend. It shows that the market opens lower & closes above the midpoint of the black body.
This Piercing Line forex candles setup portrays that the momentum of the downtrend is reducing & the market trend is likely to reverse & move in an upward direction.
This Piercing Line forex candles pattern is displayed known as a piercing line signifying the market is piercing a bottom showing a market floor for the currency price downward trend.
Piercing Line Candlestick Setup - Candlesticks Signals
Dark Cloud Cover Trading Candlesticks Signals
Opposite of piercing candle candlestick.
This candle is a long white body followed by a long black body.
The black body pierces the mid-point of the prior white body.
This is a bearish reversal pattern which forms at the tops of an uptrend.
Dark Cloud forex candles setup portrays that market opens higher & closes below the midpoint of the white body.
Dark Cloud forex candles setup portrays that the momentum of the uptrend is reducing & the market trend is likely to reverse & move in a downward trading direction.
Dark Cloud forex candles setup is shown referred to as a cloud cover signifying the cloud as a ceiling for the currency price upward forex trend.
Dark Cloud Cover Candle-stick Setup - Candlesticks Signals
Morning Star Trading Candlesticks Signals
Morning Star Candle-stick Setup - Candlesticks Signals
Evening Star Trading Candlesticks Signals
Opposite of morning star candlesticks setup
Evening Star Candle-stick Setup - Candlesticks Signals
Engulfing Candlesticks Setups - Candles Signals
Engulfing is a reversal candles setup which can be bearish or bullish depending upon whether it appears at end of a market downtrend or at the end of a market uptrend.
Bullish & Bearish Engulfing Candles Setups - Candlesticks Signals
How Do You Read Japanese Candlestick Patterns? - Forex Trading Japanese Candlesticks Patterns Described
