One of my brokers (IBFX) has a Candlestick Pattern Recognition indicator that can be attached to your charts.  It alerts you when any of the following candlestick patterns arise, and gives advice on what this means to your trading.  While I don’t use these candlestick formations alone to determine my trades, it can be very useful in confirming trades and predicting Stop Loss and Take Profit levels.

Click to learn more about the indicator

For more information on trading with candlestick patterns, check the end of this post.

Morning Star or Morning Doji Star: High Reliability Reversal

–      Characteristics:

o   Market in downtrend

o   Long black first candle

o   Small body candle or doji second candle

o   Third candle white confirming the reversal

Evening Star or Evening Doji Star: High Reliability Reversal

–      Characteristics:

o   Market in uptrend

o   Long white first candle

o   Small body or doji second candle

o   Third candle black confirming the reversal

 

 

 

 

Three White Soldiers: High Reliability Reversal

–      Characteristics:

o   Market in downtrend

o   Three consecutive long white candlesticks

o   Each candle closes at a new high

o   Opening of each candle is within the body of the previous candle

o   Each candle closes at or near the high

Three Black Crows: High Reliability Reversal

–      Characteristics

o   Market in uptrend

o   Three consecutive long black candlesticks

o   Each candle closes at a new low

o   Opening of each candle is within the body of the previous candle

o   Each candle closes at or near the low

 

 

 

 

 

 

Three Inside Up: High Reliability Reversal

–      Characteristics:

o   Market in downtrend

o   Long black candlestick followed by small body inside white candle

o   Third candle white with higher close than second white candle

Three Inside Down: High Reliability Reversal

–      Characteristics:

o   Market in uptrend

o   Long white candlestick followed by small body inside black candle

o   Third candle black with lower close than second black candle

 

 

 

 

 

 

Three Outside Up: High Reliability Reversal

–      Characteristics:

o   Market in downtrend

o   Second candle white and engulfs first black candle

o   Third candle white and closes higher than second candle

Three Outside Down: High Reliability Reversal

–   Characteristics:

o   Market in uptrend

o   Second candle black and engulfs first white candle

o   Third candle black and closes lower than second candle

 

 

 

 

 

 

Piercing Line: High Reliability Reversal

–      Characteristics

o   Market in an downtrend

o   First candle is a long black candle

o   Second candle is white with the open below the low of the previous candle

o   The second candle closes within and above the midpoint of the previous black candle

Dark Cloud Cover: High Reliability Reversal

–      Characteristics

o   Market in an uptrend

o   First candle is a long white candle

o   Second candle is black with the open above the high of the previous candle

o   The second candle closes within and below the midpoint of the previous white candle

I’m really starting to find that understanding Forex Candlestick formations is something worth taking into serious consideration.  I‘m always looking for an edge when confirming when to get into a trade or whether to stay the trade. And Forex candlestick formations are helping me reduce getting into losing trades, and keeping me in the winners longer.

If you want to learn how using Forex candles can help you become a more profitable trader, I suggest…

Not a lot of fluff and filler… just good, solid info on how to use Forex candles to make safer and more profitable trades.  (Just like I like it!)



Use Candlesticks For More Profit

Forex Candlestick Recognition Cheat SheetEdward LomaxForex Trainingcandlesticks made easy,Forex candles,forex candlestick recognition,forex candlesticks,fx candlestick patterns
One of my brokers (IBFX) has a Candlestick Pattern Recognition indicator that can be attached to your charts.  It alerts you when any of the following candlestick patterns arise, and gives advice on what this means to your trading.  While I don't use these candlestick formations alone to determine...