indicators, then Japanese candlestick forex trading strategy would meet your expectations. The pattern just shows the expectations in the market and signalizes the possible changes. The next candles entry after «free candle» or a Buy Stop order should be slightly higher than the closing price. A Stop Loss should be fixed 3-5 points below min of the «free candle». Stop Loss will rbi forex Preise live be set above the High confirmation signal. The signal is confirmed: Doji candlestick pattern or one more Engulfing pattern in the same direction.
An example of trading candlesticks strategy based on Engulfing pattern. In intraday trading, the main trend on the greater timeframe should be taken into account. At the moment of the next candlestick opening we will open a long position. «Free candle» must have the average «body» and average «shade» hammer «dodji» reversal patterns and GAP are not applicable). For the short position rules for fixing Stop Loss/Take Profit are similar. Neither forex candlestick pattern can be a trade signal itself, nor can it be used for indicating of the possible entries. For seeking of the entry, another methods of analysis rather than Japanese candlesticks should be used. For a short position (sell) a «free bearish candle» should be fixed below the moving average. The changes of the market expectations can be determined by comparing the candlesticks with each other.