Heikin-ashi and japanese candlesticks

Heikin-ashi candles are the perfect candles for trend traders.

Not only they smooth out the entire market picture, they are able to keep a trader in alignment with a trend.

Heikin candles have two colors: red and blue. Red - for bearish trends, blue - for bullish.

There is nothing simplier than reading heikin-ashi candles: just look at the color of the candle.

Regular charts:



Heikin-ashi charts:



Also keep an eye on the candle structure: a shaved bottom for bullish candlestick confirms that uptrend is still going. Same as shaved top for bearish candlestick confirms a downtrend continuation.

Trail stops alongside last candlestick body. Change trends when heikin-ashi does and be happy ith trading these amazing candlesticks!

A star or a doji - two great candlesticks in Forex charts

Almost every Forex trader knows what the terms "Star" and "Doji" means in Forex. They characterize special candlestick formations on forex price charts.
If you are hearing about stars and dojies for the first time, check out these resources for the reference:

Forex chart candlesticks
Introduction to candlesticks



Both Dogi and Star candles are the great indicators of trend beginning and ending.
They literally tell that one of the forces on the market (either bulls or bears) is giving up and another is getting stronger.

Many Forex traders like using only chart prices to make decisions about entries and exits. In such trading technique candlestick formations like Stars and Dojies play one of the key roles.

However, trading Forex with Stars and Dojies isn't simply about taking every reverse candlestick - Doji or Star - into consideration. The rules are needed in order to pick the right Star or Doji. What are those rules?

Will be continued next month.
good luck and good profits in Forex!

Are you trading Forex during the right hours?

You may have never payed attention to it before, but many good Forex strategies used by traders are bound to fail if traded during wrong market hours.

That's right. Forex market is not all even throughout the day, even though it can be traded 24 hours a day. There are times when trading volume is high and times when there is very little going on on the market.

Forex market hours are split into 4 major time periods:

London session - 3:00 am to 12:00 noon EST
New York session - 8:00 am to 5:00 pm EST
Australian session - 5:00 pm to 2:00 am EST
Asian session - 7:00 pm to 4:00 am EST

The most active trading hours belong to London and New York sessions.
During these sessions currency pairs trend and move the most allowing Forex traders to benefit from price shifts. This high activity is addressed to the fact that London and New York are the major global trading markets so far with highest number of participants.

Trading during active trading periods provide traders additional edge to the success of their trading methods.
Trading during less active trading sessions may not be suitable for all trading styles and systems traded.

Additional note can be made, that if you have been trading without proper studying of market hours and for some reason your strategy produces poor results, it is a wise idea to try it out again, but this time trading during London and New York trading sessions.

The good and free tool to check on Forex trading hours can be found at http://www.forexmarkethours.com/

See you on the profitable side!