Why you should learn the 400 years old Japanese Candlestick?

Be honest about How You Trade

Many traders are clueless about the way they trade. Some traders trade with gut, some trade with news, while some other trade with a plan. No matter what trading strategies you are using, it is important to know whether you truly know what you are doing. Before you claim that you know how to trade, you must be able to answer these two questions

1) Do you know when is the right time to enter into the market?

2) Do you know what direction to enter into the market?

Each time when you are about to place a trade, are you REALLY sure that this is the correct moment for you to trade. Next, when you decide to enter into the market, are you sure that your direction for entries are correct? We do not require you to be absolute, but at least to a large extent, you are in control for these two areas. Are you?

 

The SURE-WIN way

There is no guaranteed way of winning unless you are able to constantly know the balance of buyers and sellers in the entire market. To do that, you probably have to do insider trading, which is by law, illegal. Only through insider trading, you will be able to know the hidden orders and strength behind a particular instrument. That, will allow you to profit in the correct direction at the right time.

This is a business of doing calculated speculation. Only those who are constantly at the correct side of the market (most of the time) will be profitable. We want to do forex business profitably in this manner and most importantly, legally.

If insider trading is not possible, how can you be profitable in trading the financial markets?

The 400 years old Japanese Candlestick

400 years ago, the Japanese came up with a way of trading and speculating the commodity rice market. In those days, they did not have computers nor software for price tracking. These brilliant Japanese came up with an illustrative method to measure and monitor the price in their speculation. This led to the birth of the “Japanese Candlestick”

In this article, I will not explain on the details or the mechanisms of the Japanese Candlestick because I have those in other articles. But, I would like to explain a little on how this concept can help you answer the two important questions listed above.

Bullish engulfing Japanese candlestick

In the above chart, two candlestick bars have been circled. They form a typical “Two-Bar Japanese Candlestick Pattern”. This pattern requires two bars to form and has a name called “bullish engulfing pattern”. The bull candlestick (green bar) engulfs the bear candlestick (left red bar) to give such engulfing pattern. Bullish engulfing pattern is a typical reversal pattern. The preceding trend is usually bearish as shown on the above chart. There was a small period of bearishness before the bullish engulfing pattern appeared and reversed the sentiment back to the upside. The contrary is also true. The bearish engulfing candlestick pattern reverses the preceding uptrend into a bearish downtrend. This is shown in the below chart.

bearish engulfing japanese candlestick

Are you now able to answer these two questions?

1) Do you know when is the right time to enter into the market?

2) Do you know what direction to enter into the market?

The above two Japanese candlestick patterns were able to precisely tell you when it is the time to buy or sell short into the market. This tool is able to accurately tell you your time of action and also the types of action you should take. The types of action refer to either buying into a rising market or selling into a falling market. This 400 year old Japanese candlestick is certainly not a myth. It has been proven relevant in today’s market because many of the professional traders are using them to trade profitably every single day.

The ONLY reason why you are still not profiting could be that you have not met the JAPANESE CANDLESTICKIf you are interested, I urge you to read more ahead to learn more about the Japanese Candlestick Patterns. Learn how you can incorporate this 400 year old tool into your trading success!

 

 

 

 

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