How Candlestick Patterns Can Skyrocket Your Forex Profits
How Candlestick Patterns Can Skyrocket Your Forex Profits
Candlesticks are the backbone of Price Action Trading, leaving a “trail” of price movements that reveal profitable patterns in the $6.3 trillion Forex market. After seven years of trading and millions in profits, I rely on candlestick patterns like the Head and Shoulders to generate $1,000–$1,500 weekly. In this guide, I’ll show you how candlesticks work, why patterns are key, and how to trade them for consistent wins—without complex indicators.
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1. Understanding Candlesticks: The Building Blocks of Trading
Candlesticks are visual representations of price movements on TradingView charts, showing the battle between buyers and sellers in real time. Each candlestick leaves a “trail” of price action, forming patterns you can trade.
Candlestick Components:
Bullish Candle (Green/Blue): Price opens low, closes high. Shows buyers winning.
Bearish Candle (Red): Price opens high, closes low. Shows sellers winning.
Wicks (Trails): Thin lines above/below the candle body, showing the high/low points price reached before closing.
Open/Close: The candle’s body shows where price started (open) and ended (close) within a timeframe (e.g., 1-hour, daily).
For example, a bullish daily candle might open at 1.2000, reach a high of 1.2050, drop to a low of 1.1980, and close at 1.2030, leaving wicks as trails of those highs and lows.
2. Why Candlestick Patterns Are Powerful
Candlesticks form patterns that signal whether a trend will continue or reverse, giving you an edge in the market. Unlike indicators, which lag and complicate charts, candlestick patterns are real-time and intuitive.
Types of Patterns:
Continuation Patterns: Indicate the trend (up or down) will keep going, ideal for trend-following trades.
Reversal Patterns: Signal a trend change, like a bullish trend turning bearish at a high.
My favorite is the **Head and Shoulders** (reversal) pattern, which reliably predicts market reversals when combined with market structure (key price rejection points).
3. Trading the Head and Shoulders Pattern
The Head and Shoulders pattern is a powerful reversal signal, appearing at trend highs (bearish) or lows (inverted, bullish). It’s formed by candlesticks creating three peaks: a left shoulder, head, and right shoulder.
How to Trade It:
Spot the Pattern: At a trend high, look for a left shoulder (peak), higher head (peak), and right shoulder (lower peak) with market structure rejections.
Confirm Resistance: Ensure the pattern forms at a resistance level with 3+ touches.
Plan the Trade: Use TradingView’s short position tool to mark entry below the neckline (line connecting shoulders’ lows), set a stop-loss above the head, and target a 3:1 reward.
Risk Management: Use a position size calculator to risk 1–2% per trade.
This pattern repeats across all timeframes, but higher timeframes (daily, weekly) are more reliable, like bigger ocean waves for surfers.
4. Real Trade Example: EUR/USD Head and Shoulders
Here’s a trade I took using the Head and Shoulders pattern, generating $2,500 in a day:
Trade: Sell EUR/USD on a daily timeframe.
Setup: A Head and Shoulders formed at a resistance level with 3+ rejections. Candlesticks showed a clear left shoulder, head, and right shoulder.
Entry: Entered short below the neckline using the short position tool, risking 1% (40 pips stop-loss) via a position size calculator.
Result: Profited $2,500 as price reversed, shared live with my community.
Profit Screenshots: My students see results like $1,000, $2,500, even $10,000 weekly using candlestick patterns. Join my course to access these setups!
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Final Thoughts
Candlestick patterns are your key to mastering Forex trading, delivering $1,000–$1,500 weekly with a simple Price Action strategy. Skip lagging indicators and focus on:
Candlesticks: Read open, close, high, low, and wicks for real-time price trails.
Head and Shoulders: Trade this reliable reversal pattern at resistance/support.
Simple Tools: Use TradingView’s long/short tools and a position size calculator.
Proven Strategy: Follow my Price Action setups for consistent profits.
Ready to trade like a pro? Join my 5-Day Trading Mini-Course to learn my candlestick-based strategy and trade with a community generating massive profits weekly.
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