Forex Trading -Learn and trade with me

Forex Day Trading System - How much is the importance of candlesticks

Candlestick patterns are important and very important..When you look at a daily chart, the candlestick formations are very reliable..They point to hammer, hanging man, morning star, evening star and other formations very accurately..

However, when the timeframe of a chart drops, so does the reliability of the candlestick patterns..For e.g. candlestick formation on a daily chart is far more reliable than candlestick on an 1 hr chart..Which in turn is more accurate than the formation on a 5 min. chart

Same is true for other technical indicators such as MACD, RSI and others..Infact thats why I said in one of my previous posts on forex day trading system that don't rely on many technical indicators when doing this form of trading.

However, the candlesticks are very accurate to inform you of any strong support or resistance levels for that timeframe..So thats why, even on 1 min chart, pay close attention to the support levels and resistance levels from which the candlesticks bounce consistently.

Very soon, I'll start a series on Candlestick and important patterns..So keep visiting to learn forex trading online

thats all in this session of forex day trading system.

# posted by Money Maker : 7:20 PM