Author: rcanessa - Page 49

The Most Popular Candlestick Patterns

List of the most well-known Japanese candlestick patterns used by traders from a variety of financial markets, including Forex, stocks, commodities, and others. These patterns are grouped according to their reliability.

The principles of technical analysis can be traced to the mid-17th century when Japanese farmers used charts to track the price of rice. Later, in the mid-18th century, these farmers began the use of candlestick charts, specifically shortly after 1850. The development of this important tool of analysis of prices is credited to Munehisa Homma, a rice trader from Sakata.

Currently, the candlestick chart is one of the most widely used tools for market analysis worldwide thanks to its easy interpretation and the large amount of information that it presents which can be used to study any financial market including the Forex. It also facilitates the interpretation of more or less reliable chart patterns which are used by many traders as trading signals to open and close positions.

The candlestick patterns can provide the trader with invaluable information on the price action with a simple glance. While common candlestick formations can provide important data about what is “thinking” the market, they can sometimes generate false signals precisely because they are frequent. Therefore, it is also important to know the more advanced patterns which have a high degree of reliability and their use in combination with other market analysis tools. As with any other resource of technical analysis, the candlestick patterns should be used with other analysis tools to confirm their signals.

EXNess Broker Review 2025 – Detailed Analysis on EXNess

by rcanessa

EXness -ECN/STP broker from Europe specialized in Forex and CFD -Regulated by organizations such as CySEC -Tight spreads and high leverage up to 1:200 Visit Broker Website EXNess-Broker Review The Exness Group is an international company that offers online brokerage and investment services in Forex, Stocks, Indices, Cryptocurrency, and other markets. With headquarters in more than 5 countries, this … Read more

RSI Indicator Guide For Forex Traders

by rcanessa

This technical indicator is one of the most used in Forex strategies. I will explain below how you can better read the movements that the indicator makes to make better decisions.

What is the RSI indicator?

The Relative Strength Index (RSI) is a well-know oscillator used in technical analysis and multiple markets, including Forex, which shows the price momentum by comparing bullish and bearish movements of closing prices of a specific asset.

Trading Psychology and Trading Patterns – when the usdjpy broke the 100 level

by rcanessa

Trading with price charts in the currency markets implies looking for repetitive shapes that happened in the past and by the time current price is making a shape like that traders have an educated guess about the possible outcome. This is what is known as a price pattern.

So looking for patterns when trading is one of the things that traders have in common as this helps forecasting price for the next period, depending very much on the time frame the pattern is being identified. If, for example, a head and shoulders pattern is identified on the weekly or monthly chart, then the measured move for it implies quite a strong move price will make.

When patterns are being used in combination with market psychology, the analysis becomes even more complex. It gives the trader a competitive advantage as, on one side, the pattern represents something from the past that can be projected into the future and on the other side market psychology comes to confirm/infirm that specific move.

Trading systems based on models

by rcanessa

As we said in our previous article, we can classify trading systems into two groups: those based on models and those based on exploitation or data mining.

In this article we will discuss in detail the systems of the first type, defined as those who propose a model to represent the behavior of the market and from it, try to get benefits.

The algorithms that are part of this group are usually very simple in terms of the rules they use, although its development is usually relatively complex depending on the algorithm. The starting point of the models used for this type of strategy is the detection of a market inefficiency we want to exploit. Inefficiency produces an anomaly or a pattern on the price that can be described using a mathematical model that allows us to predict to some extent where the price will be in the next period based on a function based on historical price information.Let’s look at some of the most common strategies based on models.

Bullish Kicking Candlestick Pattern

by rcanessa

The Bullish Kicking Candlestick Pattern is a formation that occurs in both downtrends as uptrends, which has a high reliability and indicates a possible change in the market trend. We can identify this pattern as follows:

In this pattern the market trend is not important.
The first candlestick of the formation consists of a Black Marabozu.
The second candlestick consists of a white Marabozu with a gap (hole) upwards with respect to the first candlestick.

A New Way to See Trading Systems

by rcanessa

Although you probably have already noticed it, the trading systems are evolving and becoming increasingly technical. As you can imagine, some professional traders recommend to make a qualitative leap and try to convince once and for all that the use of trend lines, price chart patterns and obsolete oscillators in the same way that comes in thousands of books it is not exactly the best approach to winning in trading. I know this is a very broad and intense debate and that many people are not quite agree, but I plan to present new ways of seeing trading that might be interesting for some.

That said, we will introduce a new way of looking at trading systems. And for this let us first reformulate their classification. Typically, systems classify roughly in the classical groups of trend followers, countertrend and pattern-based. But today I propose a completely different alternative to any other classification that you may have seen.

Considering how a system is developed, we can establish two groups of trading systems: trading systems based on models and trading systems based on exploitation (mining) of data. We will describe these groups in detail.

Forex averaging down: Good or bad trading strategy?

by rcanessa

The dangers of averaging down in Forex It’s funny, but when you look for the term averaging down to talk about speculation, all you read are negative comments. Most traders say that averaging down is a really bad idea and the path to lose all your money in the trading account. When we talk about investing in stocks, it is … Read more

Forex Strategy, the Rob Booker System

by rcanessa

Rob Booker is one of the most respected Forex traders in the world, with a lot of history behind him. The Forex strategy that I am going to present today is the system of Rob Booker, denominated Arizona System.

Rob, as all traders is evolving, and currently does not use this system, he is currently promoting his Trifecta system, but we must not forget that with this system he managed to convert $2500 in $100000, which means that this system is no so bad.

When a trader designs a Forex strategy, he does this to take advantage of a market anomaly, which usually gives us an advantage, and consequently benefits for our trading account.

This is not a usual strategy, I would consider it a trading system which joins several strategies under the same idea: define what is really happening in the market, and consequently, to act.

The market has two basic trends, bullish and bearish. There are also markets without a definite trend, where there is a lateral movement, which can be consolidation, accumulation, or distribution, but there are another times in the market, in which we really have no idea what is happening and there are not many opportunities for the trader. Rob intends to find and define through indicators, at what time we are in the market, and act using a Trading technique, or a different Trading strategy.

Simple trading methods. Long-term trends following

by rcanessa

Continuing with simplicity in concepts and strategies, we will present some simple trading methods. These are certain methods for long-term trends following.

As a historical note about this type of methods, we can say that they have been there since “the origin of time” and, if they have not disappeared is for something and is that simple and effective trading methods endure in time unlike others, much more Sophisticated and complicated, that stop working and disappear.

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