Gone long in USDSEK after finding it had bullish sentiment.
I was able to get a Risk/Reward profile of 14.65 on this trade. So I was happy with this.
Methodology of this trade
1. We had a reversal candlestick pattern
2. The stochastic was in an oversold condition
3. The pattern came off the 20EMA support.
4. We find the candlestick pattern came right off a fibonacci confluence zone, an area that's probably strong support now.
5. The next day we have a open higher and indecision candle
6. We have a positive open after a doji, and positive trading to continue it afterward
There are lots of candlestick signals in the markets, both FOREX and equities that happen without any meaning. But when the candlestick patterns are in the right place, it creates a very reliable indication of whats going to happen in the markets, if you, like in this example can add multiple pieces of evidence and circumstances together to make it a strong case, then your probabilities are much higher of being in a better trade.
I hope this helps you all.
Happy trading
Tom
I was able to get a Risk/Reward profile of 14.65 on this trade. So I was happy with this.
Methodology of this trade
1. We had a reversal candlestick pattern
2. The stochastic was in an oversold condition
3. The pattern came off the 20EMA support.
4. We find the candlestick pattern came right off a fibonacci confluence zone, an area that's probably strong support now.
5. The next day we have a open higher and indecision candle
6. We have a positive open after a doji, and positive trading to continue it afterward
There are lots of candlestick signals in the markets, both FOREX and equities that happen without any meaning. But when the candlestick patterns are in the right place, it creates a very reliable indication of whats going to happen in the markets, if you, like in this example can add multiple pieces of evidence and circumstances together to make it a strong case, then your probabilities are much higher of being in a better trade.
I hope this helps you all.
Happy trading
Tom