Learn about popular candlestick patterns to improve trading accuracy when making forex trading. Includes Spinning tops, White Marubozu, Black Marubozu, Hammer, Hanging Man, Doji and many more popular trading candlestick patterns !
What are candlestick patterns in Forex trading ?
It is a method invented by Japanese traders when trading rice several decades ago but it seems to fit nicely in to currency trading too. When a higher time framework ( 1hr onwards ) chart shows up these patterns, It is likely to result in a reversal in pricing or continuation in pricing.
How accurate is candlestick patterns in binary options, forex or crypto trading ?
Well it is generally accurate but in trading nothing is 100% perfect. Higher the time framework higher the accuracy. So candlestick pattern success rate can be around 60% - 90% depending on the type of currency, time, time framework, economic related news etc. So use candlestick pattern as one of the instruments to improve accuracy of your analysis when entering a trade.
What are the popular candlestick patterns ?
Hammer, inverted hammer, shooting star, hanging man, Spinning Tops and doji are some popular candlestick patterns. You can see the below screenshot ( Click on image to ZOOM ) to learn about all common patterns to improve your Forex trading experience.