For successful and profitable trading in the Forex market, its participants use many methods and strategies of market analysis. However, among these methods of studying the behavior of the market, there are the most versatile and fervently loved options by traders. One of them is a market analysis using candlestick patterns.
The secret of its unlimited popularity lies in its ease of use. You just need to learn to interpret the most common of these patterns correctly to get the clues you need about market behavior. It is also essential to start working with a trustworthy trading partner like FX2 Funding.
From the point of view of reliability, trend work is the best option. Trading tactics in the direction of the dominant trend are followed by both beginners and professionals because they give a high win rate and a good ratio of TP and SL. Continuation candlestick patterns in trading are used as a filter to determine the state of the market.
As with other candlestick patterns, they apply to Forex as well as to other markets (stock, commodity, cryptocurrency).
Candlestick Pattern and its Features
So, a candle is a separate column that reflects the change in the price of an asset over a certain time period.
A candlestick pattern consists of a single candle or a combination of candles that graphically reflect market conditions and give a brief overview of the trading activity’s results.
Due to its high informativeness, candlestick analysis is one of the most popular indicator-free trading methods on the Forex currency market. It is worth noting that this method of trading in FX2 Funding is also one of the simplest – here, you just have to wait for the desired candlestick model to appear on the chart, and then open a buy or sell deal.
Use Trend Continuation Candlestick Patterns in Trading
The knowledge of how to use such a strategy depends on what kind of pattern you have:
- If the pattern indicates a small correction, it is possible to trade after completion. For example, when the chart goes beyond the range of the last trend candle, you can place a pending order to continue the trend.
- Such trend continuation models do not provide a reliable point. They only indicate that the trend is in full swing, and a reversal is not expected yet. If the deal has yet to be closed with a profit, you can take your time exiting the market after the appearance of such a model.
- Another option is to evaluate the market’s overall state with the help of these structures, preferably on an older scale compared to the working time frame.
The best way to use candlestick patterns of this type is to integrate them into your trading strategy. Patterns do not always give clear entry signals, but they can help you evaluate the trend. They also increase the reliability of trading signals, indicating whether there is a potential for a continuation of the movement in the former direction.
