The Authority’ on Price Action Trading. In forex provides way of easier life, Nial won the Million Dollar Trader Competition. However, forex candlesticks differ dramatically from standard bar charts even though they both present the same data.
What are forex Japanese candlestick charts? A forex candlestick chart is a visual display of many individual candlesticks that make up the price movement across a period of time for the particular currency pair being analyzed. The dramatic visual contrast from one forex candlestick to the next enables traders to spot repetitive price action setups in a dramatically easier and more enjoyable manner than using standard bar charts or line charts. The very fact that there is a dramatic color difference between bullish and bearish bars makes spotting forex candlestick patterns much easier than using a standard bar chart of bars that are the same color. The next thing you should notice about the example charts above is that the various price action setups that I teach are much easier to spot and thus take advantage of on a forex candlestick chart.
Notice how the pin bar setups, the fakey setup, and the inside bar setup all are much easier to spot on the candlestick chart compared to the bar chart. How are forex candlestick charts used? There are many books and websites dedicated to teaching traders a myriad of different candlestick patterns, however, many of these patterns are simply alternate versions of basically the same trading setup. Trading with forex candlestick patterns can be a very simple and effective way to analyze and trade the forex market. However, the value of this simplicity can be taken away very quickly when traders over-lay numerous lagging indicators on their charts, essentially hiding the power of the candlesticks beneath. This is why I teach traders to trade off a simple stripped-down, or indicator-free, forex price chart, outside of a couple moving averages which can be useful in identifying dynamic support and resistance areas.
Where can I find out more about forex candlestick charts and price action? If you would like to learn a very clean, effective, and common sense way to trade the forex market with candlestick charts and my proprietary take on price action setups, you might want to check out my forex price action educational material. I truly feel that the visually superiority of forex candlestick charts combined with the power and simplicity that my price action trading strategies contain, can be a big help to your forex trading career. Your email address will not be published. Nial Fuller’s Price Action Forex Trading Course.