smart trading decisions. This allows you to buy or sell at the right time. So in the next section, youll learn how to identify the direction of the trend without using candlestick charts. If you want to see what I am currently watching check out my weekly analysis on. Pros and cons of the strategy. You cant, it is too messy. You read me right. Pros, very simple and easy-to-use. You will generally find that there are 5-8 support and resistance areas on most charts.
Then lets begin, this is the most important thing before you can identify the direction of the trend (and its not an indicator). If you dont know the basics, thats fine, I got you covered! Sometimes its difficult to identify the direction of the trend based especially when the candlesticks are flying all over the place. Conclude a deal to buy as soon as the RSI and Stoch indicators are in oversold territory and closed upward candle, which covers the body of the previous candle At least in the middle of the previous or more! But for precise entries, exits and trade management, its best to stick with candlestick or bar charts. A bullish candle which absorbs its previous bearish one (or at least covers 50 of the previous bearish candles body) is presented.
While this forex free bonus no deposit strategy can be traded with just the 4 hour and daily time frames, there is absolutely no sense in sacrificing potential trades because your broker is too outdated to provide new time frames. Support and resistance areas divide your chart up into buy and sell areas. How can you trade comfortably using a chart like this? All together this indecision candle forming right after strong bullish candles suggests that power has shifted from a decidedly bullish (buyer) market to an undecided market. In this case we saw a transition of power from a bullish preceding trend to a bearish reversal trend separated by a stall on resistance.