How to Optimize Forex Trading Candlestick
The potential success of forex trading candlestick, for some traders is enough. That is to simply see the movement of market prices to get a high trading opportunities. However, like any other trading strategy, this strategy does not always yield positive results and poses a big potential risk of buying or selling signals from a candlestick setup.
Meanwhile, forex trader candlestick can be tempted to trade with large volumes of the emergence of candle pinbar (shooting star) or engulfing. There are some rules that can be applied to candlestick traders to increase their chances of success.
Map a price chart
The first in determining the candlestick setup is to do an overall analysis of the traded pairs. Its purpose is to get a clear Buy and Sell signal. This candlestick analysis does not require an indicator. However, understanding the price action is able to signal.
By making market mapping, using both recent and historical support and resistance zones, forex traders should be able to identify the price action in the area to be the most effective trading signal. It also helps traders avoid trading in inappropriate areas and relieve stress after market entry positions. Making lines and areas of support and resistance provide candlestick setup with high profit opportunities.
In addition, forex traders will increase their profitability by adding psychological indicators to their charts. For example, pinbar identification or shooting star located at 38.2% and 50% Fibonacci Retracement level.
Managing lot trading (money management) is something that most important and required forex trader PA. As good as any candlestick setup that traders do, they have to manage lot trading. Maintaining trading under the recommended 3% of total capital, ensuring that PA traders can resume trading at a later time.
In addition to money management, risk management for PA traders is also needed. When it entered the market, but the market moves opposite, PA traders can immediately close the position immediately. As an example, the shooting star is followed by bullish engulfing. At the beginning there is a Sell signal and then followed Buy signal, then PA traders can close the position immediately or make a switch.