Candlestick Charting the Forex Market

While on a Forex website the other day I read an article where the author told his readers that "candlestick charting can't be used in Forex trading". This is a common misconception among the currency trading community that needs to be corrected. Candlestick charting the markets is different from most other markets and exchanges but in my opinion candlestick charting is the most simple and powerful method to trade Forex there is! Is there a difference between Forex and other markets when using candlestick charts? Yes! But that doesn't mean you can't use candlesticks effectively in your trading!

The reason the mistaken belief about candlestick trading the Forex market has flourished is the fact that Forex markets are traded 24 hours a day, while other financial markets have a daily open and close. Most of the traditional candlestick patterns rely on gaps, both up and down, to complete the pattern properly. Since there is no break in trading in Forex, these gaps rarely occur and the patterns form differently...but they still form. Once a trader understands just how these patterns form, a whole new world of simplicity and profit will be the result.

Understanding reversals is one of the most important things that you can know, and Forex candlestick chart patterns can help calculate bullish and bearish reversals. Once the basics of the Forex candlestick charts have been mastered, the trader will find out that there is a great deal that can be learned from a candlestick chart that has been well put together. Where a simple bar chart will only show you vertical lines that display the highs and lows of each time period, a Forex candlestick chart will provide more information. Once you have learned to read a Forex candlestick chart, you will begin to parse universal patterns that will help you take in a situation at a glance.

Can candlestick charting techniques be used effectively while trading the Forex markets? You bet...and don't let anyone tell you otherwise! They are a powerful tool that, if you haven't tried, you're really missing out! Part of being a successful trader is learning to think for yourself. Take some time to study candlestick charting as it applies to Forex and you might just see your profits as well as your understanding of market psychology really pay off!

B.M. Davis is an active trader and the publisher of The Forex Candlestick System. If you would like more information about candlestick charting the Forex market, please visit his website at http://www.forexcandlestickcourse.com

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