Forex Indicator – Important Reversal Candlestick Patterns You Must Not Miss

Reversal candlestick patterns are one of my favourite Forex indicators which has helped me in almost all my trading. There is nothing more estatic than knowing when the price is going to reverse and you can simply enter a trade in the anticipated direction making you PROFITS.

You will be seeing a lot of candlestick patterns in those forex trading courses or books that you have either attended or read before. However, I only use three candlestick patterns in my entire trading and they have accuracy of at least 80%.

You can go to your forex chart after this post to check out this forex indicators and you will understand why I love them so much.

First of all, a reversal happen only when there is a trend. If there is an uptrend, you should be looking for a reversal candlestick patterns to signify the end of a run so that you can go short or if there is a downtrend, you should be looking for a reversal candlestick patterns to signify the end of a run so that you can go long. In short, using reversal candle pattern is only applicable when there is a trend. This forex indicators does not work well during consolidation and you must be aware of it.

These are the three reversal candlestick patterns that are extremely useful for my trades.

They are

1) Railway Tracks – This candlestick patterns looks like two side by side long bar with different colour. This pattern is by far one of the most accurate way of looking for reversal.

2) Spinning Tops/Spinning Bottoms – This candlestick patterns has a short body with two wick at the extreme end. This is also a side of reversal.

3) Hammar/Inverted Hammar - This candlestick patterns usually has a long wick and a short body. This is usually showing a change of sentiment of the traders.

These three reversal candlestick patterns usually signify the end of a run and will give you a warning that the price is going to change direction. All you have to do is to wait for a trendline break to trigger your trade.

Note that these 3 candlestick patterns only works when there is a trend. It do not work when price moves in sideway. You should always add this to one of your forex indicator. You can find out more information on other forex trading indicator here

To Our Forex Trading Success!

1. Forex Reversal Identifying Techniques
2. Useful Forex Candlestick Indicator I am Using
3. Forex Indicator Top Pick – The Best Forex Indicator To Use
4. Forex Indicator – How To Trade Using Moving Averages
5. Using Forex Fibonacci Indicator To Tell Reversal