One of the most effective technical analyses in Forex trade is candle stick. These patterns are regular observation of the area to which prices are trending towards. A lot of traders have based their trades on the movement pattern and appearance of the candle stick. These patterns reveal the bullish and bearish trends of the market.
In using the Meta 4 trader platform, you need to set the candle stick to colours that are easily understood by you. The movement of the candle stick reveals a lot in price pattern.
Below is A step guide to adjusting the candle stick to reveal the bear and bull sticks.
- Click on the candle stick after downloading, and then right click on the mouse. Move the cursor down to properties at the bottom of the table. Complete properties of the candle stick will be opened.
- Scroll down to bear candle, click on the arrow and click on the orange colour, this changes the bear candle colour to orange. Scroll to bar down and repeat the process, change the colour to orange. This completely changes the entire bearish candle to orange.
- Scroll to the bull candle, click on the arrow and change the colour to lime, scroll up and do the same to the bar up icon. This completely changes the bull candle to lime. Click on OK and everything you have set changes on the trading platform.
At this point it doesn’t matter the time frame at which the platform is. The colours will remain that way for all time frames. The reason I prescribe these colour is to assist you understanding the signals of an Up market and a Down market. A closer look at the candle stick during market hours will see the stick rising or falling; depending on the prevailing market economic indices affect the currency of trade.
Some professionals have been able to successfully anticipate the move and appearance of the candle stick. However these observations have their own limit to a successful trade. When it comes to making the right decision to buy or sell currency based on the Resistance or Support level, then the candle stick is a good start otherwise, take a second thought.
As an advice, do not place your trades based on candle stick pattern alone, as this is very unprofessional, it could be tantamount to playing in the casino.
One of the best ways to use candle stick is to see it as a guide to the level of effect the currency is having in the market per time frame.
In the next edition I would be revealing how best to use candle stick in response to time frame.
Remember, Forex is all about timely decision making.
Wishing you the best of trades!!!