Japanese candlesticks and naked trading

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Binary Broker!
    Perfect for beginners!
    Free Demo Account! Free Trading Education!

  • Binomo
    Binomo

    Only for experienced traders!

Japanese candlesticks and naked trading

Japanese candlesticks are the most used technical tool, mostly they use it in naked trading which does not mean you trade in front of computer naked, you can keep your clothes on. It means that when you do technical analysis you have chart free without any indicator except japanese candles. Obviously they plan now the most important role but they can do that beacuse each japanese candle gives us enough information and if we form them together and look at them, they form patterns from which we can indicate where the price will go in future.

WHAT YOU WILL LEARN HERE:

  • What is japanese candlestick?
  • How japanese candlestick looks?
  • How to use different types for trading?

WHAT IS JAPANESE CANDLE?

Japanese candle will show us based on the time frame of course where is the open and close price and also the highest and lowest peak in the specified time. So if we will use hourly chart, means that one japanese candlestick will represent one hour and will give use information where the price was the highest in this hour and where it was the lowest and also the open and closing price as we said. Same goes for all other time frames. Here is how japanese candle looks:

As you can see we have on the left, bullish candle which is used in an uptrend and on the right we have bearish candle which represent downtrend. The bullish candle has the closing price higher then the opening price. You can see the upper shadow or also called wick which shows highest point that price reached and on the down side you can see the lower shadow or wick to where the price went down the most in period of time. This is the information you get from japanese candlestick but we have different forms of candlestick which can be used in trading.

HOW TO USE THEM?

You have seen what japanese candle is and what kind of information it can give you. Now, let us take a look at various japanese candles and how you can use them for trading purposes and what they represent.

PIN BAR

If you are following our school you remember this pin bar from pinocchio strategy. If we focus now on the right pin bar from the picture which is bullish one meaning it goes uptrending. You still have to know how to read such candlesticks. As you can see, the bears were pushing price down but the more we went too the end of the period, the more bulls were pushing the price up and managed to push it higher then the opening was. It closes a little lover that is why a little upper shadow or wick is made. After such candle, means that bulls are now in control and they have reversed the price to go uptrending and will more likely move up. Bearish or downtrending pin bar is opposite as you can see from the picture aswell.

DOJI CANDLE

This kind of sub-japanese species of candle forms when there is almost the same open and close price which as you can see from the picture creates a small body and long shadows or wicks. Most usual doji candles have almost the same lower and upper shadow or wick lenght. But you can see that others also qualify as doji candle since the open and close price are almost the same.
When you see a doji candle on a chart it means there is no specific direction and therefore there is indecision on the market. Eventually one side will prevail and move to that direction, so focus on the trend.

MARUBOZU CANDLE

This candle represent good indicator of strenght. If doji has no specific direction this has high direction. When you see a marubozu that is bullish you can be certain that bulls are in control and vice versa if you see bearish marubozu. As you can see charactheristics of a marubozu are, long bodies with no shadows or wicks which gives you strong indication. Although they are really rare to find but when you do, you know it is a good indicator that price will go in the direction it is indicated.

FINALE

No matter what, there is no 100% signal that japanese candles are always right but most of the time they give us the correct information. This is just basic formations we have mentiond while you have even more shapes it is good to learn when you for example join two or three together. Today actually almost everyone uses japanese candlesticks when trading since they are the best when it comes to predicting values.

Japanese Candlesticks and Candlestick Trading Made Easy… Finally!

If someone told you they had uncovered a 300 year old secret that had the potential to bring great wealth, would you listen? If they could explain the mysteries behind the secret so that you could profit as well, would you be interested? If this secret was fully explored on the Internet and available in training CD’s, would you sign up?

For those of you who are involved in the stock market, technical analysis can be somewhat of a mystery. You research and study, yet your trades just don’t end up being very successful.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Binary Broker!
    Perfect for beginners!
    Free Demo Account! Free Trading Education!

  • Binomo
    Binomo

    Only for experienced traders!

Hello! My name is Steve Bigalow, and for over 30 years, I have searched for the “Holy Grail” to consistent investment profits. Name any investment philosophy ever conceived and I have probably tried it. Then, a little over 18 years ago, I discovered Japanese Candlesticks. Since then, I have developed and refined techniques using the Japanese Candlesticks to consistently pull profits from any kind of market. Bull or bear, stocks, commodities , or tulip bulbs, it doesn’t matter. All you need to know is how to recognize the easily-seen signals the Japanese Candlesticks create. I want you to get ready to find out more about that 300 year old secret of Japanese Candlesticks and candlestick trading can give you that head start!

We at the Candlestick Trading Forum know there are others offering to teach Japanese Candlesticks and candlestick trading, but we believe this is the best place for you to learn.

Stephen W. Bigalow,
noted author of:

Profitable Candlestick Trading
More Info

High Profit
Candlestick Patterns
More Info

Candlestick Profits:
Eliminating Emotions

More Info


Our mission at the Candlestick Trading Forum is simple:

“To build a community of the most educated, self-sufficient investors in the world with a common bond of using the art and science of Japanese Candlesticks to find profitable trades.”

To fulfill that purpose, we have packed this website with hundreds of pages of candlestick trading and candlestick charting information. In addition, we are continually adding and updating so that you can be sure you are getting the instruction and information you need. Whether you trade in stocks, commodities or options, Japanese Candlesticks and candlestick trading are for you, and we are your location for Japanese Candlesticks!

As you can see, there is a wealth of information conveyed in Japanese Candlestick signals. Fortunately, over eighteen years of successful investing has reduced the important signals to twelve. These 12 “Major Signals” not only produce high probability trade situations, whether day trading, swing trading or long term investing, but understanding the investor psychology that formed the signals allows an investor to clearly understand what makes prices move. The 12 Major Signals Educational Package are the core for successful investing.

Why should you become a Member of the Candlestick Trading Forum?

  • You will be exposed to the best stock trade candlestick signals for the day.
  • You will be provided with the best-researched commodity and futures trades available through candlestick analysis.
  • You will learn why the trades were recommended, using new candlestick investing concepts.

You can sign up with the Candlestick Trading Forum knowing that not only do we want to teach you the wisdom of Japanese Candlesticks, but we want to welcome you into a community of investors who discovered a 300 year old secret and were savvy enough to make it their own.

Welcome to the Candlestick Trading Forum and Japanese Candlesticks! Now you know the secret!

How to Use Fibonacci Retracement with Japanese Candlesticks

If you’ve been paying attention in class, you’d know by now that you can combine the Fibonacci retracement tool with support and resistance levels and trend lines to create a simple but super awesome trading strategy.

But we ain’t done yet!

When combining the Fibonacci retracement tool with candlestick patterns, we are actually looking for exhaustive candlesticks.

If you can tell when buying or selling pressure is exhausted, it can give you a clue of when price may continue trending.

Below is a 1-hour chart of EUR/USD.

The pair seems to have been in a downtrend the past week, but the move seems to have paused for a bit.

Will there be a chance to get in on this downtrend? You know what this means. It’s time to take the Fibonacci retracement tool and get to work!

As you can see from the chart, we’ve set our Swing High at 1.3364 on March 3, with the Swing Low at 1.2523 on March 6.

Since it’s a Friday, you decided to just chill out, take an early day off, and decide when you wanna enter once you see the charts after the weekend.

Whoa! By the time you popped open your charts, you see that EUR/USD has shot up quite a bit from its Friday closing price.

While the 50.0% Fib level held for a bit, buyers eventually took the pair higher. You decide to wait and see whether the 61.8% Fib level holds.

After all, the last candle was pretty bullish! Who knows, price just might keep shooting up!

Well, will you look at that? A long legged doji has formed right smack on the 61.8% Fibonacci retracement level.

Has buying pressure died down? Is resistance at the Fibonacci retracement level holding?

It’s possible. Other traders were probably eyeing that Fib level as well.

Is it time to short? You can never know for sure (which is why risk management is so important), but the probability of a reversal looks pretty darn good!

If you had shorted right after that doji had formed, you could have made some serious profits.

Right after the doji, price stalled for a bit before heading straight down. Take a look at all those red candles!

It seems that buyers were indeed pretty tired, which allowed sellers to jump back in and take control.

Looking for “Fib Sticks” can be really useful, as they can signal whether a Fibonacci retracement level will hold.

If it seems that price is stalling on a Fib level, chances are that other traders may have put some orders at those levels.

This would act as more confirmation that there is indeed some resistance or support at that price.

Another nice thing about Fib Sticks is that you don’t need to place limit orders at the Fib levels.

You may have some concerns whether the support or resistance will hold since we are looking at a “zone” and not necessarily specific levels.

This is where you can use your knowledge of candlestick formations.

You could wait for a Fib Stick to form right below or above a Fibonacci retracement level to give you more confirmation on whether you should put in an order.

If a Fib stick does form, you can just enter a trade at market price since you now have more confirmation that level could be holding.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Binary Broker!
    Perfect for beginners!
    Free Demo Account! Free Trading Education!

  • Binomo
    Binomo

    Only for experienced traders!

Like this post? Please share to your friends:
How To Choose Binary Options Broker
Leave a Reply

;-) :| :x :twisted: :smile: :shock: :sad: :roll: :razz: :oops: :o :mrgreen: :lol: :idea: :grin: :evil: :cry: :cool: :arrow: :???: :?: :!: