Market History Predicts Forex Trends

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BY WWW.FOREXCONSPIRACYREPORT.COM MARKET HISTORY PREDICTS FOREX TRENDS

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http://www.forexconspiracyreport.com/market-history-predicts-forex-trends/ Market History Predicts Forex Trends Technical traders rely on the fact that market history predicts Forex trends. Long ago in ancient Japan rice traders recognized price patterns and saw that certain patterns reliably predicted subsequent price action. They found that, to a degree, one did not need to understand or deal with fundamentals. One only needed to recognize and act on any of a variety of signals. These traders originated the Japanese candlestick system. This approach was the start of technical trading, which traders today use in Forex, stock, commodity, and options markets. As market history predicts Forex trends, traders can anticipate a Forex market reversal with the Doji signal or forecast uptrends with the Bullish engulfing signal from the Japanese candlestick arsenal of trading tools. Although there are many more examples of candlestick signals in which market history predicts Forex trends, we focus here on the Doji signal and the bullish engulfing signal. Japanese Candlesticks A Japanese candlestick is a rectangle superimposed on an equity price chart. The candle body is white if the equity closed up for the day and black if it closed down. The top and bottom of the rectangle, the body of the so called candle, are the opening or closing prices of the day depending on whether it was an up or down day. Lines, shadows, extending above and below the candle represent the extremes for trading for the day. Doji Signal The Doji candlestick has a very flat candle body with shadows of varying lengths. This means that the Forex pair that the candle represents opened and closed at nearly the same price. Although Japanese candlestick signals may comprise several candles the Doji signal is only one candlestick. The Doji signal tells us that the market is at a moment of indecision. The signal helps predict the turn of a trending market. It does not tell us much in flat market. Bullish Engulfing Signal To read more visit www.ForexConspiracyReport.com

Transcript of Market History Predicts Forex Trends

Page 1: Market History Predicts Forex Trends

B Y W W W. F O R E X C O N S P I R A C Y R E P O R T. C O M

MARKET HISTORY PREDICTS FOREX TRENDS

Page 2: Market History Predicts Forex Trends

HTTP://WWW.FOREXCONSPIRACYREPORT.COM/MARKET-HISTORY-PREDICTS-FOREX-TRENDS/

• Technical traders rely on the fact that market history predicts Forex trends. Long ago in ancient Japan rice traders recognized price patterns and saw that certain patterns reliably predicted subsequent price action.

Page 3: Market History Predicts Forex Trends

HTTP://WWW.FOREXCONSPIRACYREPORT.COM/MARKET-HISTORY-PREDICTS-FOREX-TRENDS/

• They found that, to a degree, one did not need to understand or deal with fundamentals. One only needed to recognize and act on any of a variety of signals.

Page 4: Market History Predicts Forex Trends

HTTP://WWW.FOREXCONSPIRACYREPORT.COM/MARKET-HISTORY-PREDICTS-FOREX-TRENDS/

• These traders originated the Japanese candlestick system. This approach was the start of technical trading, which traders today use in Forex, stock, commodity, and options markets.

Page 6: Market History Predicts Forex Trends

HTTP://WWW.FOREXCONSPIRACYREPORT.COM/MARKET-HISTORY-PREDICTS-FOREX-TRENDS/

• Although there are many more examples of candlestick signals in which market history predicts Forex trends, we focus here on the Doji signal and the bullish engulfing signal.

Page 7: Market History Predicts Forex Trends

HTTP://WWW.FOREXCONSPIRACYREPORT.COM/MARKET-HISTORY-PREDICTS-FOREX-TRENDS/

• Japanese Candlesticks

Page 8: Market History Predicts Forex Trends

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• A Japanese candlestick is a rectangle superimposed on an equity price chart. The candle body is white if the equity closed up for the day and black if it closed down.

Page 9: Market History Predicts Forex Trends

HTTP://WWW.FOREXCONSPIRACYREPORT.COM/MARKET-HISTORY-PREDICTS-FOREX-TRENDS/

• The top and bottom of the rectangle, the body of the so called candle, are the opening or closing prices of the day depending on whether it was an up or down day.

Page 10: Market History Predicts Forex Trends

HTTP://WWW.FOREXCONSPIRACYREPORT.COM/MARKET-HISTORY-PREDICTS-FOREX-TRENDS/

• Lines, shadows, extending above and below the candle represent the extremes for trading for the day.

Page 11: Market History Predicts Forex Trends

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• Doji Signal

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• The Doji candlestick has a very flat candle body with shadows of varying lengths. This means that the Forex pair that the candle represents opened and closed at nearly the same price.

Page 13: Market History Predicts Forex Trends

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• Although Japanese candlestick signals may comprise several candles the Doji signal is only one candlestick. The Doji signal tells us that the market is at a moment of indecision.

Page 14: Market History Predicts Forex Trends

HTTP://WWW.FOREXCONSPIRACYREPORT.COM/MARKET-HISTORY-PREDICTS-FOREX-TRENDS/

• The signal helps predict the turn of a trending market. It does not tell us much in flat market.

Page 15: Market History Predicts Forex Trends

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• Bullish Engulfing Signal

Page 16: Market History Predicts Forex Trends

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• This signal is a pair of candlesticks that appears at the end of a defined downtrend. The first of the candles is the last of the downtrend, a black candle.

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• The second candle of the pair is a white candle as the trading day ends higher than it started.

Page 18: Market History Predicts Forex Trends

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• The second candle extends lower than the first and higher as well.

Page 19: Market History Predicts Forex Trends

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• This means that the currency in question gaps down at the start of trading but that a strong market move takes the currency price above the opening price of the previous day.

Page 20: Market History Predicts Forex Trends

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• This signal tells us that a bear market has run its course and a bullish reversal is in the offing. This prediction is how market history predicts Forex trends.

Page 21: Market History Predicts Forex Trends

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• One commonly does not need much except a clear signal in this regard to trade to profits. This signal is seen in Forex gap trading.

Page 22: Market History Predicts Forex Trends

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• A Note of Interest Regarding These Two Signals

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• Be aware of the Doji with seeking to read a bullish engulfing signal. The very flat Doji candlestick is commonly engulfed by whatever went before or comes after.

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• As such it is important to look at the entire signal, the market prices preceding the candlestick in question, and check out the following day for confirmation before committing to the pattern.

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• For more useful information and insights into trading foreign currencies, visit www.ForexConspiracyReport.com.