O'Reilly logo

The FX Bootcamp Guide to Strategic and Tactical Forex Trading by Wayne McDonell

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

SUMMARY

It wasn’t just the candlestick formation that made you get out of your winning trade. It wasn’t fear or any other emotion. You measured the strength of the market and were looking for signs of reversal. As soon as you saw evidence of such, you logically took profit. This is exactly how to use candlestick patterns.
In contrast, if the market was moving more quickly, such as riding the 5, things may have turned out differently.
You may have broken through resistance immediately. In this case, you often see a pullback, but resistance has become support and price blasts off like a rocket again. Notice that this actually created a continuation pattern.
In any case, you need a trend to continue or to reverse. What if you are not in a trend but caught in a range? We will explore this question in Chapter 13.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required