There are two very tricky candles that I must warn you about. Both are part of the umbrella group. The first is the shooting star. The shooting star comes at the top on an uptrend and has a shadow twice the size of the real body. The thing about the shooting star is that it opens near the bottom of the candle goes up to create the illustration of a strong bullish candle, quickly turns on you, and closes near its open. It can be bullish or bearish, but a bearish shooting star is stronger and more likely to create a reversal than a bullish shooting star.
A shooting star happens when the bulls are running strong with the ball , and it looks like they are going to score when the bears come in and slam them at the last minute. Many times the bears take over then run the ball the other way. Sometimes there is a fight and there is a sideways standoff for a while. The hammer is the other trick candle that you want to be aware of. A hammer come at the end of a downtrend and will mislead you with the idea that it is going to continue in a bearish fashion before price turns traitor on you. It is called a hammer because it looks like a hammer. A hammer opens near the top of the candle, falls strong before reversing on you, creating a lower shadow that is twice the size of its real body . When you see a hammer form, it is a sign that you need to protect your profits.
The thing that is detrimental about the shooting star/hammer is that if you enter either before it closes, you will more than likely find yourself on the far end of the WRONG SIDE of the trade. If you are using candles as trading flagships, always let them close before you jump into a trade. Impatience in the face of either of these candles will break you fast.
YOU CAN DO THIS (^_^)
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PRACTICE DRILL AND REHEARSE CREATING GREATNESS ~ free books on forex trading for beginners
If you have been with me for a while, you have heard me preachPRACTICE, DRILL, REHEARSE! Guys you are entering into the toughest, trickiest market in the world, and you can not jump in and expect to make a killing. Every superstar, every winning athlete, when you dont see them, are PRACTICING, DRILLING AND REHEARSING the perfection of their art. If you want to do this for a living. You have got to PRACTICE, DRILL AND REHEARSE on a demo account !!.
You are going to get bruised, so what, every great athlete or performer does, and yes you are going to get your feelings hurt from time to time. Falling down does not create greatness, getting up does, no matter how many times it takes.
There are two ways to learn this market. The hard way like most of us, or find a good mentor that is willing to tell you the truth about what is going on here. If you are really struggling with your trading, STOP NOW !!!!! and get a demo account until you perfect some things. If you are still losing on your demo regularly, then you are not ready for a live account.
YOU CAN DO THIS, but you must discipline yourself enough to develop winning strategies. There are no perfect strategies, you are just looking for some that will put you on the right side of the trade most of the time.
Will you take a hit? Sure. So what, there are still plenty of opportunities for profit. If you are going to shine like a star in Forex, you must PRACTICE, DRILL AND REHEARSE on your demo account. I know you dont want to do it because youd rather be making money. The thing that gives champions an advantage over the rest, is what they are willing to invest in their art. Super champions, musicians, actors, and all achievers have one thing in common and that is their willingness to go the distance to become great.
When ever you begin to trade live again; start off small, building both your account balance and your confidence. Over trading no matter who you are can kill you fast, the market is to unpredictable to gamble your families hard earned cash. Forex is like any other profession, it is a get rich slow game. Ok (^_^), you can do it here much faster than other places, but you must start off slow and light, and always keep learning. Yes FOREX TRADING IS EASY, it is the game that can be hard. It is a winner take all sport
Winning Trading to you dear Friend (^_^).
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The hammer is the other trick candle that you want to be aware of. A hammer come at the end of a downtrend and will mislead you with the idea that it is going to continue in a bearish fashion before price turns traitor on you. It is called a hammer because it looks like a hammer. A hammer opens near the top of the candle, falls strong before reversing on you, creating a lower shadow that is twice the size of its real body . When you see a hammer form, it is a sign that you need to protect your profits.
