📣How to read and understand how to read Forex charts for beginners

📣How to read and understand how to read Forex charts for beginners

If you want to play to be successful Players should be able to read the graph. Today, I will introduce how to read Forex charts for beginners.

🔹 Before reading, you need to know first.

As the title says, that is. Before you can read it, you need to know what the graph looks like. The graph used is named candlestick chart

Different types of candlestick charts indicate price behavior as follows:

1) If the closing price is higher than the opening price A white candle will appear. It indicates that buying power is greater than selling power.

2) If the closing price is lower than the opening price A black candlestick will appear. It indicates that you are selling more than you are buying.

3) If the wick is short This indicates that the trading price is not much different from the closing price and opening price.

4) If the wick is long This indicates that the trading price is very different from the closing price and opening price.

🔹So what patterns can be found in candlestick charts?

1) Doji is a candle with the same opening and closing prices. This may indicate a tendency to change. There are 4 forms as follows:

- Doji is buying power and selling power that goes up and down before closing at the opening price.

- Gravestone Doji is buying power that rises before being hit by selling power and closes at the open price. This could indicate a changing direction or the end of an uptrend.

- Dragonfly Doji is selling down and before increasing with buying pressure and closing at the open price. This could indicate a changing direction or the end of a downtrend.

- Four Price Doji is buying power and selling power is much less. As a result, the closing price is the same as the opening price. If a chart like this occurs, it should not be traded.

If the Doji follows a white candlestick Should wait for the next candle to see where the trend is going and if the Doji is following the black candlestick Just wait and see, just like in the case of white candlesticks as well.

2) Marubozu. In the case of the whole white candle, it means purchasing power in control The opening price equals the lowest price and the closing price equals the highest price. And in the case of the whole black candlestick, it means selling, while the opening price equals the highest price and the closing price equals the lowest price.

3) Spinning Top indicates hesitation of buying power and selling power. where short candles indicate less movement of the price. Long wicks indicate the intensity of buying and selling power. but not decisive

If Spinning Top occurs in an uptrend, it means Buying power is weak and indicates a downtrend. If Spinning Top occurs in a downtrend, it means Selling power is weak and indicates an uptrend.

🔹 How many types of candlestick patterns are still divided?

Candlestick patterns can be divided into 3 types: one candlestick pattern. two candlesticks and three candlesticks The details are as follows.

1) One candlestick pattern can be broken down as follows:

- Hammer and Hanging Man. If the price is likely to go down and the Hammer bar rises, it may indicate a shift from downtrend to uptrend. This was due to weaker selling power. As a result, purchasing power pushes prices. close up But should wait for the next candle to watch the trend again. If during an uptrend, a Hanging Man candle appears, it may indicate a shift from an uptrend to a downtrend. This was due to weaker purchasing power. As a result, selling power pushes the closing price down. But should wait for the next candle to watch the trend again.

- Inverted Hammer and Shooting Star If during a downtrend, the inverted hammer bar appears, it may indicate a downtrend to an uptrend. This was due to increased purchasing power. As a result, selling power presses buying power, but fails, causing the buying power candlestick to close. But should wait for the next candle to watch the trend again. And if during an uptrend, the Shooting Star bar appears, it may indicate a shift from an uptrend to a downtrend. This was due to increased sales power. As a result, the buying power presses the selling power, but does not succeed, causing the selling power candlestick to close. But should wait for the next candle to watch the trend again.

2) Two candlestick patterns can be subdivided as follows:

- Bullish Engulfing and Bearish Engulfing if the candle is black and followed by a larger white candle. It clearly indicates a change from a downtrend to an uptrend. This is called Bullish Engulfing if the candle is white and is followed by a larger black candle. It indicates a clear shift from an uptrend to a downtrend. This would be called Bearish Engulfing.

- Tweezer Tops and Tweezer Bottoms if the first candlestick is up and the next candle is down. The candle wicks are the same size. It indicates a shift from an uptrend to a downtrend. This case is called Tweezer Tops and if the first candlestick is bearish and the next one is bullish. The candle wicks are the same size. It indicates a change from a downtrend to an uptrend. This would be called Tweezer Bottoms.

3) Three candlestick patterns are subdivided as follows:

- Morning Star and Evening Star. In the case of Morning Star, the first bar is downtrend, the second bar is Doji, and the third bar is bullish. The third candle must be longer than half of the first candle. These bars will indicate Indicates the transition from a downtrend to an uptrend. In the case of the Evening Star, the first bar is an uptrend. The second candle is a Doji and the third is a downtrend. The third candle must be longer than half of the first candle. These bars indicate a shift from an uptrend to a downtrend.

- Three White Soldiers and Three Black Crows In the case of Three White Soldiers, the first bar is a reversal bar. The second candle is a confirmation of the trend reversal. The second bar must be larger than the first. and the third bar must be the same size as the second bar. These bars indicate a downtrend to an uptrend if, in the case of Three Black Crows, the first bar is a reversal bar. The second candle is a confirmation of the trend reversal. The second bar must be larger than the first. and the third bar must be the same size as the second bar. These bars indicate a shift from an uptrend to a downtrend. Both types differ only in the color of the candlesticks.

- Three Inside Up and Three Inside Down. In the case of Three Inside Up, the first bar is down. should be found at the downtrend and a long stick The second bar must be half the length of the first. and the third bar must close above the highest price of the first bar. to say that buying power is higher than selling power These bars indicate a downtrend to an uptrend. In the case of Three Inside Down, the first bar is bullish. should be found at the tip of the uptrend and a long stick The second bar must be half the length of the first. and the third candle must close above the lowest price of the first candle. to say that selling power is superior to purchasing power

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