Learn about Candlesticks on forex trading

Still confused about how to read candlesticks? Let's learn candlestick forex again so that our trading results are better.

Candlestick is a type of chart that is widely used by traders because in addition to displaying a form that is pleasing to the eye also because the information displayed by the candlestick is quite clear and complete.

For beginner traders, usually passionate even busy memorizing the shape and name of the candlestick and its function to determine the direction of the next graph, information that requires you to know the name and shape of the candlestick is indeed not wrong. But also not too true, because with the many forms and names of candlesticks, of course memorizing will be very difficult. Especially for prospective traders whose age is quite advanced, it is certainly not easy to do that.

So, what is the best way to understand candlesticks?

key candlestick How to understand the candlestick is to read the shape of the candle to find out what power is mastering the market, whether buying power or selling power.

By knowing what power is in control of the price, we can make a decision to make a transaction. Because the graphic movement formula is:

"Market will continue to move straight according to the dominating power"

If the power that dominates the market is BUY power, then the price chart will continue to rise as long as the Sell power has not been able to beat the buy power, or Sell power cannot take over the market.

Before talking more about learning forex candlesticks from the standpoint of energy, let's study the shape and name of the candlestick first. We do not recommend you memorize it, just enough you know.

Here is an example of the names and shapes of candlesticks:

1. Marubozu Candlestick

marubozu candlestick

Marubozu is a candlestick with a long body and no tail.

If only 1 candlestick, Marubozu shows that in one time frame period, there is only one party that dominates the market strongly without any opposition from the other side.

The next chart direction after the emergence of marubozu white is that it tends to continue to rise.

The next chart direction after the Black Marubozu appears is that it tends to go down.

2. Bullish Engulfing Candlestick

Bullish Engulfing candlestick

Bullet engulfing is a form of candle that is composed of 2 candlesticks, namely the first short-bodied candlestick with a downward direction, and a long-bodied second candlestick whose direction rises.

The bullish engulfing candlestick shows the ability to reverse the direction of the situation from the previous one down.

The next direction after the bullish engulfing appears is to continue to rise.

3. Candlestick Spinning Tops

candlestick spinningtops

Spinning Tops are candlesticks with short bodies and long tails, both the upper and lower tail.

If only 1 candlestick, Spinning Tops shows that in one time frame period, both parties are both active and strong, so that it can be said that this spinningtop candlestick is a series candlestick.

The direction of the next chart is unclear. Because both parties are equally strong and there is no visible defeat.

4. Candlestick Doji

candlestick doji

Doji is a form of candlestick where the opening price and closing price are almost the same.

If only 1 candlestick, Doji shows the condition that both parties (buyers and sellers) are not passionate about transacting so the market becomes quiet, as a result the price movement is not far away.

The next chart direction is not yet clear, because the market is still quiet.

5. Candlestick Dragonfly and GraveStone

gravestone candlestick dragonfly Candlestick Dragonfly is a doji candle where the opening, closing and highest prices have the same value, along with a long lower tail.

Gravestone candlestick is a doji candle where the opening, closing and lowest prices have the same value, along with a long upper tail.

If only 1 candlestick, dragonfly and Grave stone shows a reversal will occur.

6. Hammer Candlestick and Hanging man

candlestick hammer hangingmanHammer is a form of candlestick that appears after a downtrend, where the body is small but has a long lower tail.

Hanging man is a form of candlestick that appears after a rising trend, where the body is small but has a long upper tail.

Both the hammer and hanging man candlesticks show that the price is reversing.

7. Candlestick Harami

harami candlestick

Candle Harami is a form of candlestick composed of 2 candles, where the first candle has a long body, while the second candle has a small body and its position is inside the body of the first candle (like a baby in the mother's stomach, therefore the harami candle is also called a pregnant candle).

This Harami candlestick shows a weakening, so the possibility of a subsequent reversal.

 8. There are still many other names and forms of candlesticks

In addition to the 7 examples of names and forms of candlesticks above, there are actually many more. The number reaches hundreds