Welcome to Currency Trading Guide
Trading Foreign Currency How To Article
This is a selection made from among articles on Trading Foreign Currency How To. For a permanent link to this article, or to bookmark it for future reading, click here.
’žB a s i c s o f J a p a n e s e C a n d l e s t i c k C h a r t i n g : A S i m p l e S t r a t e g y o n C u r r e n c y T r a d i n g
from:D u r i n g t h e 1 7 t h c e n t u r y , t h e r e w a s a J a p a n e s e m a n w h o b e c a m e f a m o u s w i t h r e g a r d s t o r i c e t r a d i n g . I t i s b e l i e v e d t h a t t h i s m a n w o n o v e r o n e h u n d r e d t r a d e s . H i s s e c r e t w a s u s i n g c a n d l e s t i c k c h a r t i n g .
Y o u m a y h a v e a c o m m o n q u e r y w h i c h m o s t p e o p l e h a v e i n m i n d : W h a t a r e c a n d l e s t i c k s ?
C a n d l e s t i c k s c a n b e v i s u a l i z e d a s y o u r t y p i c a l b a r c h a r t o u t l i n e d i n t w o d i m e n s i o n s . M a n y a r e a w a r e t h a t t h e u s u a l b a r c h a r t h a s i t s c o m p o n e n t s , j u s t l i k e u s i n g t h e c a n d l e s t i c k c h a r t .
T h e m a j o r c o m p o n e n t s i n c a n d l e s t i c k c h a r t i n g a r e :
1 . R e a l B o d y t h i s t e r m r e f e r s t o t h e m a i n b o d y o f t h e c a n d l e s t i c k w h e r e i n i t c o r r e s p o n d s t o t h e o p e n i n g a n d c l o s i n g o f p r i c e s . R e a l b o d y i s a g a i n s u b d i v i d e d i n t o t w o c a t e g o r i e s :
§š B l a c k b o d y , t h i s i s s o m e t i m e s c a l l e d f i l l e d - i n b o d y . B l a c k b o d y s i g n i f i e s t h a t t h e c l o s e i n a c e r t a i n p e r i o d o f t i m e i s l o w e r t h a n t h e o p e n .
§š W h i t e b o d y , w h i c h i s s o m e t i m e s r e f e r r e d t o a s o p e n d e n o t e s t h a t t h e c l o s e i s o n t o p o f o p e n .
2 . S h a d o w i t i s a n a r r o w v e r t i c a l l i n e w h i c h c h a r a c t e r i z e s t h e i n c r e a s e a n d d e c r e a s e o f p r i c e i n a g i v e n p e r i o d o f t i m e . S h a d o w s a r e a s w e l l s u b d i v i d e d i n t o t w o c a t e g o r i e s : ( 1 ) l o w e r s h a d o w ; a n d ( 2 ) u p p e r s h a d o w .
N o w t h a t y o u h a v e a b a s i c b a c k g r o u n d w i t h r e g a r d s t o t h e c o m p o n e n t s o f c a n d l e s t i c k c h a r t i n g , t h e n e x t s t e p i s t o h a v e a n i d e a o f c a n d l e s t i c k c h a r t i n g p a t t e r n s . T h e r e a r e s i x c o m m o n p a t t e r n s t o l o o k i n t o :
1 . H a m m e r p a t t e r n t h i s i s a c a n d l e s t i c k w i t h a s m a l l r e a l b o d y a n d a l e n g t h y l o w s h a d o w . T h i s p a t t e r n c a n u s u a l l y b e v i e w e d w h e n e v e r t h e r e i s a d o w n t r e n d i n t h e m a r k e t .
2 . E n g u l f i n g p a t t e r n w i t h t h i s t y p e o f p a t t e r n , t h e m a r k e t t r e n d c a n b e v e r y w e l l d e f i n e d d u e t o t h e c a n d l e s t i c k s w h i t e r e a l b o d y w h i c h s u r r o u n d s t h e p r e c e d i n g d a y s r e a l b o d y .
3 . D a r k - c l o u d c o v e r p a t t e r n t h i s c a n b e v i e w e d w h e r e t h e p a t t e r n d u r i n g t h e f i r s t m a r k e t d a y i s c o m p o s e d o f r e s i l i e n t w h i t e r e a l b o d y i n a t o p r e v e r s e f o r m .
4 . H a n g i n g m a n p a t t e r n t h e f e a t u r e s o f a h a n g i n g m a n p a t t e r n r e s e m b l e s t h a t o f t h e h a m m e r p a t t e r n , t h e o n l y d i f f e r e n c e i s t h a t t h e f r a m e w o r k i s o n a n u p t r e n d f o r m .
5 . B e a r i s h p a t t e r n i n s t e a d o f a w h i t e r e a l b o d y , a b l a c k r e a l b o d y s u r r o u n d s t h e p r e c e d i n g d a y s r e a l b o d y .
6 . P i e r c i n g p a t t e r n t h i s t y p e o f p a t t e r n i s t h e e x a c t r e v e r s e o f d a r k - c l o u d p a t t e r n w h e r e i n s t e a d o f a n u p t r e n d , a d o w n t r e n d o c c u r s .
E a c h p a t t e r n i s d i s t i n c t f r o m o n e a n o t h e r . Y o u r a d v a n t a g e t h o u g h i s y o u c a n e x p e r i m e n t m i x i n g t w o o r m o r e p a t t e r n s . Y o u c a n a l s o m o d i f y t h e p a t t e r n s f r o m i t s o r i g i n a l t o c o m e u p w i t h a s t r a t e g y w h i c h s u i t s y o u r p r e f e r e n c e .
T h e a b o v e - m e n t i o n e d i n f o r m a t i o n i s m e r e l y a p r o l o g u e t o J a p a n e s e c a n d l e s t i c k c h a r t i n g . T h e r e a r e s t i l l s o m a n y i n f o r m a t i o n t o d e c i p h e r , t h e r e a r e s t i l l s o m a n y p a t t e r n s t o d e t a i l o u t , a n d t h e r e a r e s t i l l s o m u c h t h i n g s t o l e a r n . W h a t y o u c a n d o i s h a v e a n i n - d e p t h s t u d y o f t h i s t y p e o f c u r r e n c y t r a d i n g s t r a t e g y b y r e a d i n g b o o k s a b o u t J a p a n e s e c a n d l e s t i c k c h a r t i n g . A d d i t i o n a l l y , y o u c a n a l s o e n r o l l i n a n i n s t i t u t i o n w h e r e t h e s a i d t r a d i n g s t r a t e g y i s b e i n g t a u g h t .
W i t h p r o p e r e d u c a t i o n a n d a c c u r a t e a p p l i c a t i o n o f l e a r n e d t h e o r i e s a b o u t J a p a n e s e c a n d l e s t i c k , m a n y t r a d e r s w i l l b e a b l e t o s u c c e e d w i t h t h e i r g o a l s o f g a i n i n g p r o f i t a n d s t r a t e g i c a l l y l e a r n i n g t h e m a r k e t . W h o k n o w s y o u w o u l d b e a b l e t o w i n o v e r o n e h u n d r e d t r a d e s j u s t l i k e w h a t t h e J a p a n e s e m a n d i d .
Trading Foreign Currency How To News
Indian Rupee Trades At New Record Low Against Dollar - RTT News
 Moneycontrol.com | Indian Rupee Trades At New Record Low Against Dollar RTT News The Reserve Bank of India imposed restrictions of $100 million on position limit for forward contracts by banks and advised the banks dealing in foreign currency to bring down their trading limits by June-end. "The position limit for the trading ... MARKET EYE-Only $400-500 mln left in exporter USD sales-traders Steps taken by India to support rupee India Shares End Lower |
Rupee sinks below 55 - Calcutta Telegraph
 Calcutta Telegraph | Rupee sinks below 55 Calcutta Telegraph At the Interbank Foreign Exchange market, the domestic currency opened slightly lower at 54.45 a dollar from last weekend's close of 54.43 and immediately touched a high of 54.44. However, it fell sharply at the fag-end of trading, breaching the ... Rupee at record low of 55.35 despite RBI steps Rupee up 4 paise against dollar after touching all-time low Rupee stages recovery after touching new low of 55.07 |
Seniors on the Go: Coping with foreign travel hassles - Chicago Tribune
Seniors on the Go: Coping with foreign travel hassles Chicago Tribune HASSLES YOU CAN MITIGATE Foreign currency in advance. Many guidebooks still advise you to get "some" foreign currency so you can pay for transportation when you arrive. These days, that is an unnecessary hassle, and you typically get a lousy exchange ... |
Brazil Real Closes Weaker - Wall Street Journal
Brazil Real Closes Weaker Wall Street Journal By JEFF FICK RIO DE JANEIROāBrazil's real currency continued its slide against the US dollar Monday, but stopped short of the key BRL2.05 mark as traders attempted to elicit central bank intervention amid a backdrop of global uncertainty. |
TEXT-Fitch affirms CPC Corporation,Taiwan at 'A+';outlook stable - Reuters
 Telegraph.co.uk | TEXT-Fitch affirms CPC Corporation,Taiwan at 'A+';outlook stable Reuters (The following statement was released by the rating agency) May 22 - Fitch Ratings has affirmed CPC Corporation, Taiwan's (CPC) Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'A+' with a Stable Outlook and its Short-Term Foreign Currency IDR ... UBS - Fitch Downgrades Japan Stock futures drop on global growth concerns Fitch Cuts Japan's Credit Rating |
Sudan starts trading devalued pound to end black market - BusinessLIVE
Sudan starts trading devalued pound to end black market BusinessLIVE Sudanese foreign exchange bureaux started trading Sudanese pounds at a devalued rate on Monday as part of an effort by officials to curb illegal trade and stablise the currency. Black market dealers in the capital Khartoum said they would continue to ... |
Euro Falls as Confidence Forecast to Drop Amid Contagion Concern - Bloomberg
 Bloomberg | Euro Falls as Confidence Forecast to Drop Amid Contagion Concern Bloomberg Brazil's real sank as Finance Minister Guido Mantega said a weaker currency is helping to reignite the economy. India's rupee plunged to a record against the dollar, spurring the central bank to impose curbs on trading in the foreign-currency futures ... |
Sudan starts trading devalued pound to end black market - Reuters Africa
 Al-Arabiya | Sudan starts trading devalued pound to end black market Reuters Africa By Alexander Dziadosz KHARTOUM (Reuters) - Sudanese foreign exchange bureaux started trading Sudanese pounds at a devalued rate on Monday as part of an effort by officials to curb illegal trade and stablise the currency. Black market dealers in the ... You are here:Home |