We are learning about Price Patters. Yesterday we learnt about Candlesticks. Now let us go through about Candlestick Formations.
What are Candlestick Formations:
By definition, Candlestick formation is a formation of different consecutive candlesticks that shape up in one particular way. This formation (as a whole) is called Candlestick Formation. These combination of Candlesticks or Candlestick formation gives us the PRICE PATTERS to trade. Some of these patters give us continuation or reversal patters. Here you must note one thing. This patters are formed by one to three Candlesticks. Most important thing is we are going to look only for the candlestick formations around the support/resistance levels (ONLY AROUND THE SUPPORT / RESISTANCE LEVELS).
Market is not about PREDICTION it's about REACTION. As Forex trades,r our job is not to foresee the next market moves but to react as soon as possible to the market swings / move that's is happening on our charts. It's just not possible to see the next market moves. So our job is to wait for the market moves to react (trade).
The Conclusion is, we are going to trade in the directing of market, depending on the price patterns around the support / resistance either to continuation or reversal .
In the next post I am going to write about the different types of Candlestick formations that we are going to consider for our trading.
