trend reversals. Source: Japanese Candlestick Charting Techniques, A Contemporary Guide To The Ancient Investment Techniques Of The Far East by Steve Nison, Prentice Hall Press, Second Edition, 2001. Dead Zone This empty zone tells you that the price action isnt headed anywhere.
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You may also hear it called a rally, correction, or trend reversal. One of the most popular candlestick patterns for trading forex is the doji candlestick (doji signifies indecision). The evening star and the morning star. Draw rectangles on your charts like the ones found in the example. In this section, 12 patterns are dissected and studied, with the intention to offer you enough insight into a fascinating way to read price action.