Japanese candlesticks- insider of technical analysis

Hello Guys

I am myself Eagle price been around the forex and other financial markets for nearly a year.First of all I should thank forex factory for being a central website where Senior traders share their views , thoughts and their experience as a forum or thread which is very helpful for beginners and Intermediate Traders. Not to say much about me I am an Intermediate trader looking to became consistently successful in the field of financial markets. More over forex shown me the basic step of my life and helped me to over come the struggles at the hands of poverty! My Carrier Began as an IB with a leading forex firm which changed my life Before I was working as an Office assistant earning 70$ a week (3500 INR) without good nutrition and food , taking responsibility over my family made my life a never ending struggle but as Mr.Churchill say " "If you are going through hell keep going" I moved forward with confidence that sure a day comes for me then I was browsing around net and found info about forex joined as an IB referred some clients by hard efforts without even sales skills!! From there it went on like that and now I am here !!! at Forex factory and trading in the financial markets for over a year

Note: My English is quite poor Improving step by step!!

OK,Coming to the main picture of the thread I am here to share my views and thoughts about an Ancient old Technical Analysis method which is very simple but very effective tool called Japanese Candlestick Patterns which is the key point of many Western and Price action analyse techniques such as Head and shoulders, Bottoms, tops , More over Candlestick patterns have very High accuracy level around 70-80% when included with western analysis such as Price actions, Moving averages etc

To know the details about Candlestick patterns and its origins you can google "candlestick patterns"

And the ones who are already familar with candlestick patterns or has basic knowledge about Candlesticks are welcomed to share their views From Next Post I will start bringing the charts in

HAPPY TRADING,REGARDS
EAGLEPRICE

I think you are a great person/trader to achieve such kind of results within just one year. I also interested about candlestick patterns. Would like to see your next few posts.

Dear Parox

Thanks For your appericiation

Here is an Example of using candlesticks along with support and resistance I marked some key levels of past support
resistance and candlestick formations.Let me show how clearly the price movement can be predicted using Candlestick patterns First picture may be messy If you are an Intermediate or advanced candlestick trader take a look,how key levels and patterns obeying each other

Here is the closer look at the current situation of GBP/USD at H4 Timeframe it is quite easy to understand and self explainable

Hi Eagleprice, nice thread!

I just started using candle sticks in my market analysis - currently reading the candle stick bible by Steve Nilson.

I look forward to following your thread!

Dear Ras al Ghul

Thanks for Your reply and here is the current setup details in GBP/USD D1 time frame

Buy stop at 1.5353
SL at 1.5193
TP at 1.5520
Risk: Reward=1:1

A chart is worth of thousand words

Most Important thing in this setup is stick Sandwich pattern I am not quite familar and sure about because this pattern has two characteristics

It may change the current move
or Continue with the current move


Anyway keeping my eyes at risk management let's see how it goes

This is the closer look at the current setup on GBP/USD in D1 time frame
Taking a clue from H4 timeframe

Currently waiting for confirmation
Look at the chart

Not yet entered the trade Price is in a consolidation so waiting for the move now

Going out station for a while will be back soon at monday, from next week I will post the charts and continue with analysis regularly

Currencies will be covered from Monday:

GBP/USD
AUD/USD
GBP/AUD

HAPPY TRADING

Been out for a while nearly a week

Here is the current view on the market


GBP/USD D1 Time Frame
Price outlook: Retracement from downtrend
Movement: Range (Slight Uptrend)
Last pattern: Dark cloud cover
Current pattern: Bullish harami
Key points :
Last Resistance has converted to support at 1.5237(Blue Line)
Current Resistance is at 1.5358 confirmed by DCC Pattern (Red line)
Price found support at 1.5237 with Bullish harami while converting past resistance to support
After harami pattern market may range b/w 1.5358 and 1.5237
Or Breaks 1.5358 resumes retracement
To break below there is must be another confirmation candlesticks

AUD/USD D1 Time Frame
Price outlook: Broad Range or Sideways
Movement: Range
Last Pattern: Evening Doji star,Bearish Sandwhich
Current Pattern: Bearish Harami Cross
Key Points:
Price is Moving in a Broad Range where support resistance levels holding perfectly
Market holded resistance at 1.0570 with Evening Doji star
And downfall continued with Bearish Sandwich filling the levels with bigger candles b/w 1.0396 and 1.0275 (Blue Lines)
Price holded support with Bullish harami at 1.0275 with oversold market condition
Now the market has 3 options:
1.Range b/w 1.0396 and 1.0275
2.Goes Up from 1.0342 (Maroon Line) till 1.0570 (Red Line) Last resistance
3.Breaks below from 1.0342 till 1.0189 (Green Line) Last Support

GBP/AUD D1 Timeframe
Price Outlook: Retracement from Downtrend
Movement: Slight Uptrend (Consolidation)
Last Pattern: DCC,Piercing Line (Exact Correlation)
Current Pattern: Bearish Harami
Keypoints:
Market Retracing from Past Downtrend Played price level b/w 1.4449 and 1.4633 (Blue Lines)
Price action broke the 1.4633 level but formed DCC at Resistance 1.4833 (Red Line)
And after short Price fall Market converted Past resistance to support at 1.4633 with Piercing Line
After Huge Upmove Price holding at 1.4833 as resistance trying to break further upside with Rising three as Unconfirmation
Market may move in two ways:
1. Can break the 1.4833 level with rising three moving further upside
2. or Range at the Current level b/w 1.4780 (dotted Orange line) and 1.4833 current resistance

Current outlook on the price including previous close
GBP/USD D1 time frame

AUD/USD D1 Timeframe
Market may range b/w the levels

GBP/AUD D1 time frame
Looks like Resistance holding better

The longer the the time frame the better the visuality this is what I found on weekly time frame

GBP/USD W1 Timeframe
Taking short on Evening star
and resistance at 1.5358

Disappointing that this thread has ceased any correspondence since April last year. I've been trading using this very method for the last 2 years now and absolutely love it. The simplicity is what gets me everytime. Though it does (or did for me anyway) take a fair while to be able to "see" the signals. Still a mountain of trees in the way but bit by bit getting to see the forest (so deep). I'd like to post a chart of a trade "live" I just closed out with a bit of text added. I find doing this actually helps me a lot with my trading. It's a visual thing this business so here it is....... http://clip2net.com/clip/m105827/thu...-clip-33kb.png

http://clip2net.com/clip/m105827/thu...7-clip-7kb.png
http://clip2net.com/clip/m105827/thu...6-clip-5kb.png
http://clip2net.com/clip/m105827/thu...-clip-20kb.png
The tricky part is catching the move early so as to get best bang for buck. It's so easy to see the retrace either up or down on say a 4 hour chart but by then the best entry has been well and truly missed. That's why I watch for price getting close to Big Round Numbers. If you look at any chart support and resistance is almost always around these round numbers, some pairs are more attuned to BRN's than others and some (I have found) are more likely to touch then move away from the 200ema than other pairs.

Entia non multiplicanda.... Latin......"Lets keep it simple"

http://clip2net.com/clip/m105827/thu...-clip-61kb.png

It's not humanly possible to watch this market for these signals 24/5 so I work around what suits my life. Luckily, very luckily for me the London open is 6pm my time which is ideal for me. In saying it's not possible to watch the charts for the week, there are soooo many trades it doesn't matter. I actually enjoy seeing what would or could have been. To me, it's good practice to slowly wander back over a 4 hour or 1 hour chart and see the exhaustions and how they played out and how I would have traded them.
It's a damn sight easier to do than when there's no forward price on the screen, but that's a time and experience thing, it's gotta be fun!!