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Default Chapter 9, Part VII - Summary: Japanese Candlesticks and Patterns Sheet. Page 2

Discussion in 'Complete Trading Education- Forex Military School' started by Sive Morten, Dec 15, 2013.

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  1. Sive Morten

    Sive Morten Special Consultant to the FPA

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    Candlestick Patterns properties:

    1. Do not use any pattern as a single tool for trading. Use them in context and together with other tools, for example support/resistance levels. Because it’s much safer!

    2. Pattern is treated as formed, when market totally completed it – i.e. after close of trading session. Do not try to anticipate the patterns.

    3. Appearing of any pattern does not mean that we have to buy or sell blindly. If it was so simple, then even monkeys could become billionaires. We need further confirmation from the market by following price action.

    4. Most patterns are treated as triggered by the market if the market closes above/below of high/low of the pattern on the next trading session according (i.e. confirming) with the pattern’s direction.

    5. Most patterns are treated as failed if the market closes above/below of high/low of the pattern on the next trading session against (i.e. disaffirm) the pattern’s direction.

    6. Be careful with trading so-called “not perfect” or “insufficient” patterns.

    7. Even appearing of some perfect pattern does not mean that market will act accordingly. Patterns fail often. That’s why we have points 1 and 3 here.

    And here is the table:


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    P.S. This lesson was written by Sive Morten, who has been working for a large European Bank since April of 2000, and is currently a supervisor of the bank's risk assessment department. Sive's knowledge of forex market and banking industry is vast and quite complete. If you have any specific questions about forex, banking industry, or any other financial instruments, please post them on the next page and Sive should answer soon.



    Note: FPA ranks are earned in the battles against scam, not in the classroom.
     
    #1 Sive Morten, Dec 15, 2013
    Lasted edited by : Feb 29, 2016
    Hamza Samiullah and fran alvarez like this.
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