In the two previous chapter, I have told you everything you need to know about the famous Japanese candlestick chart and the common patterns in the chart which can give you, as a trader, important signals to predict how the market is trending and will the prices go up or down.
Now that you are familiar with the basics, in this chapter, I will enlighten you about the best Forex signals which you can follow to get profitable returns. I prefer to use individual candlestick bank Manipulation signals that can help any Forex Trader in predicting the market and have an edge over other traders.
In the last chapter, I mentioned chart patterns like the double top and head and shoulders. These patterns too are good at predicting the market prices and trend. However, these patterns require sizeable stop losses to work out properly. Additionally, they also take a long time to materialize when they are used by themselves.
These patterns are not the wisest choice when you have a limited time span and cannot wait for days or months for your trade to play out. The need of the hour is to figure out more efficient trading patterns that can give us good results in a shorter time frame.
The candlestick patterns can come to your aid during these times.
In a Forex chart, a single candlestick can be thought of as a visual representation of the High, Low, Open and Close prices during the time span when the candle was open. These four points of data tell us everything we need to know about what happened during the entire session of a single candle.
The graphical representation of the data makes our analysis much faster. We can now predict more efficiently how the market prices would move.
As you may have already guessed, there are a wide number of candlestick formations. While some of the formations consist of just one candlestick pattern, others are an amalgamation of two or three patterns. One or two candlesticks usually contribute to some of the best Forex Forex signals.
No need to complicate things any further! At TTS Markets, I will tell you the best and the easiest candlestick-based Forex signals that have yielded results in the past and continue to do so every day in the Forex Trading market.
The Rejection Candle
The Rejection Candle is one of the easily-identifiable candlestick patterns in the Forex charts owing to the large wick that sticks out from the end of the candle.
The body of the candle is usually smaller in size and is found at one end of the candle range. The traders can infer from the large candle that the price “rejected” a certain area of the chart.
While longer lower wicks are a sign of bullish rejection and signal to the traders that the prices will probably take an upward turn, longer upper wicks signify a bearish rejection and are almost always the tipping point for the market prices to fall drastically.
Rejection candles can produce great signals to the Forex traders about the potential market movements. In the Bank Manipulation trading, rejection candles provide valuable signals for the Forex traders.
Breakout Traps and Reverse Trade Triggers
This is perhaps one of the best Forex signals that can be used Bank Manipulation Trading Technique.
When the market prices break through some containment, breakouts are said to occur. Traders need to be very careful when dealing with a breakout. While some breakouts produce explosive moves that can give profitable results, others can go the opposite of the planned way.
There are some areas in the chart where there are high chances of a breakout to occur. Amateur traders make blind trades in these high-risk areas expecting a breakout to happen.
As the price breaks out of the high-risk containment area, many amateur traders make a trade seeing the breakout movement of the market. A break out trap occurs when the price collapses below the containment line again, thus “trapping” the amateur traders who traded on the breakout movement which was a false move.
When the prices take on the opposite route of the initial breakout, it is known as the breakout trap and reverse trap. It involves entering into a market with true momentum of the market.
The breakout Trap and Reverse Trap formation consist of two candles. The second candle in the formation is the actual trigger for the trade.
The traders can trade in this formation “live”. This implies that the trader does not have to wait for the trigger candle to close to get a valid signal.
Breakout Trap and Reverse Trade are debatably one of the best Forex signals that provide the most promising and explosive movements in the long run.
Find below some real examples of the formation:
This formation can be thought of as a new and more enhanced version of the “Outside Candle” trade setup. Outside Candle does not produce valid signals until the actual candle is closed. It is the closed candle version of the Breakout Trap and Reverse trade signal.
The problem with the Outside Candle is that we miss out on a lot of valuable moves. The Breakout Trap and Reverse Trade signal is a definite improvement on the Outside Candle since it lets us trade in real time. The traders do not have to wait for the candle to close. There are better opportunities to start at better entry points and get profitable rewards.
There are certain Bank Manipulation signals which you can use to enter real market breakouts with a very low risk for bear or bull traps. The Inside Candle and Indecision candle are two such formations that are the best Forex signals for trading market breakouts.