moonchild
VIP Contributor
Candlesticks in Forex are one of the indicators that are used to make trading decisions and also they help us to understand the direction the market is heading too.
When you open your charts, you will mostly see a candlestick pattern but if you don't understand it you'll mostly don't know what you're doing.
To be able to understand candlestick patterns you have to understand what they stand for, the green candle means the bullish candle which represent an uptrend and the red candle means the bearish candle which represent the downtrend.
A candlestick pattern is said to have formed when two or more candles come together.
Bullish engulfing: is said to be formed when a small or medium red candle is fully engulfed by a green candle, this pattern means the bulls have taken over the market and the trend is going up and as a trader you can take advantage of this move and enter a buy position especially when it happens in a key support or resistance level.
Bearish Engulfing: when a small or medium sized green candle is engulfed fully by a long red candlestick. This is a strong signal to sell the market, especially when it happens at a supply or demand level.
When you open your charts, you will mostly see a candlestick pattern but if you don't understand it you'll mostly don't know what you're doing.
To be able to understand candlestick patterns you have to understand what they stand for, the green candle means the bullish candle which represent an uptrend and the red candle means the bearish candle which represent the downtrend.
A candlestick pattern is said to have formed when two or more candles come together.
Bullish engulfing: is said to be formed when a small or medium red candle is fully engulfed by a green candle, this pattern means the bulls have taken over the market and the trend is going up and as a trader you can take advantage of this move and enter a buy position especially when it happens in a key support or resistance level.
Bearish Engulfing: when a small or medium sized green candle is engulfed fully by a long red candlestick. This is a strong signal to sell the market, especially when it happens at a supply or demand level.
