Most exchanges in the Forex markets revolve around buy and sell signals. Of the 6 there are, 3 are candlestick patterns and the other 3 are chart patterns. Though these setups are pretty simple, the main goal is to bring in profits!
Let’s take a look at these signals, learn more about them and see how they can be used to make profits!
Candlestick Buy and Sell Signals
When you’re observing candlestick patterns, we recommend focusing on three main ones.
- Pin bar
- Engulfing bar
- Inside bar
You might think why the pin bar is valuable if it can only be traded on the 4-hour and daily time frames. However, the engulfing and inside bars are what you’re really here for. They are effective on daily timeframes and higher. However, be mindful of using them on lower timeframes.
The pin bar is characterized by long upper or lower wicks. You can use this to understand support/resistance from the markets. The primary use of pin bar charts is to study support and resistance in trades.
If you want to see when buyers and sellers are getting exhausted, you should be studying the engulfing bar. Keep studying the daily chart to see the engulfing patterns and when you spot unreliable signals on intraday charts, it’s time to be wary.
The inside bar is a very famous reversal/continuation candle formation which works with just two candles. You can compare this with short-term market sentiments and anticipate any big moves that might happen in the market. The inside bar will show a reluctance of prices above/below the preceding candle.
Head and Shoulders
Most Forex traders consider the Head and Shoulders to be the most profitable approach. It forms after an extended move up, signalling exhaustion from the buyer’s end. One of the top Forex trading signals, this pattern also represents a potential reversal. The Head and Shoulder formations are profitable because they provide hundreds of pips in profits if you are able to trade wisely.
Aside from these 4 signals, one step you can take to ensure you have a successful career in the Forex trading market is partnering up with a knowledgeable broker. When it comes to Forex buy and sell, one bad move is all it takes to lose thousands of dollars. This is where we at WesternFX can help you out! We house a number of expert Forex brokers in-house, who will help you learn the art of trading and get to the top.
There are a number of Forex trading signals in 2021, if you want to get ahead of the market, you need to have knowledge on all of these! Reach out to us today and our experts will provide you with the guidance you need to excel!