The Most Profitable Candlestick Patterns

Along with the duration, the types of candlestick patterns (Candlestick Pattern) in forex trading continue to be many variations, ranging from one candlestick pattern, 2 bars, 3 bars and so on. However, from all these options, in fact there are some profitable candlestick patterns that you must know. What kind of candlestick patterns are they? Come on, we learn in this post.

Candlestick Pattern Interpretation Flashback

Candlestick is an ancient charting method from Japan that has been tested for accuracy until hundreds of years later until now. Although it has been used for such a long time, its popularity has become part of the well-known technical analysis used by various groups of traders.

It should be noted, analysis with candlestick patterns is listed in the discretionary analysis procedure. That is, technical analysis through candlestick patterns, basically wants to rely on the trader's subjective instincts to master price patterns on the chart until it becomes a real trading execution. The implication is that it takes experience and a large amount of time so that this method can really bring maximum profits without changing.

Examples of Profitable Candlestick Patterns

To make it easier for newcomers to understand, profitable candlestick patterns will explore the arrangement of technical analysis in general, candlesticks have ready levels in the form of "sign" and "verification".

The "sign" level means that the candlestick has created a pattern that will indicate an up or down movement, but traders are not advised to place a position first. On the other hand, the "verification" level means the candlestick pattern already recommends that traders place positions exploring the potential of the movement according to the emerging pattern.

Next are types of profitable candlestick patterns according to their confirmation form at the beginning of the position:

1. Pinbar Pattern

The pinbar pattern is one of the most profitable candlestick patterns that often appears on charts. This pattern is easy to spot because the shape of the shadow is always farther away from the body and the end of the opponent's shadow (nose). Continue to be much shadow than the body and nose, so that it continues to be a big symptom that there may be a trend continuation or reversal.

The occurrence of the pinbar candlestick pattern brings the address of market affection which was initially led to one goal, but after that it revolves around the goal, as a result it leaves a distant shadow trail. The illustration, when the price approaches the resistance or support limit, the pinbar usually indicates that a reversal is about to form:

To find out how to use this candlestick rule, also follow the post Peeling Trading Strategies With Cafe Pins.

2. Inside bar pattern

This second profitable candlestick pattern generally occurs very often when the trend has reached its highest or lowest point. The Inside Kafe pattern is always represented by the character of 2 candlesticks, where one of the bars is smaller and is located between the range of the main bars (Mother Bar).

This profitable candlestick pattern carries the address of confirmation between traders vs. consumers, where both are trying to attract each other until the conclusion is that one party is subdued then the other party takes the lead as a result, the latest trend is formed. In its development, the Engulfing pattern is also listed in the Inside Kafe type of pattern.

3. Three Outside Up and Three Outside Down Patterns

The Three Outside Up and Three Outside Down patterns also include the development of the Inside Kafe pattern. The problem is, in Inside the Cafe, the initial candlestick is generally larger than the second candlestick, so in this profitable candlestick pattern, the initial candle is even smaller or located inside the next candle. That is, the first and second cafes show the center of gravity between merchants vs. Consumers continue to be big(expansion) and the champion of emerging power is confirmed by the third cafe.

The Three Inside Up pattern indicates a bearish reversal (price retrogression from rising to shrinking). On the other hand, the Three Inside Down pattern indicates a bullish reversal opportunity (price retrogression from going down to going up).

4. Evening Star and Morning Star Pattern

The next profitable candlestick patterns are named Evening Star and Morning Star. The Evening Star and Morning Star rules are 3-bar candlestick patterns that address the indecision of market players. However, the third candlestick confirms where the next price ideal is headed.

Evening Star pattern brings nature at there will be a bearish reversal (price retrogression from rising to shrinking). On the other hand, if a Morning Star pattern appears after the force period has decreased, then there will be a high probability of a bullish reversal (price retrogression from down to up).

5. Multi-Bar Reversal Pattern( Falling and Rising Three Methods)

Usually, it continues to be a lot of stems in a certain way, so it will become less frequent in the level of occurrence. However, the accuracy of the trading signs of the Falling and Rising Three Methods pattern is greater than that of the pattern with fewer bars. The illustration is kind of like a profitable candlestick pattern on this bottom:

This fifth profitable candlestick pattern has the typical characteristics of 3 cafes flanked in the middle, but after that it is countered by the last cafe. The closing price of the last candle confirms the accuracy of this multi-bar pattern.

In the Falling Three Methods pattern, a bullish reversal (price retrogression from down to up) is confirmed after the last cafe closing is smaller than the initial cafe. On the contrary, in the Rising Three Methods pattern, please place a long position (buy) after the last cafe closed is bigger than the initial cafe.