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Beginners Guide FX

The document discusses candlestick patterns in technical analysis. It explains that candlesticks use open, high, low, and close prices to visualize market movement over a period of time. Bullish candlesticks have closes above opens and are typically white, while bearish candlesticks have closes below opens and are typically black. The size of the candlestick body indicates the strength of movement. Longer shadows provide information about price fluctuations above and below the open/close range. Different timeframes like minutes, hours and days are used to analyze trends over various periods. Common objects like trendlines, horizontal lines, rectangles and arrows can help identify support/resistance and signal trend direction changes.

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Khebz Fx
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179 views6 pages

Beginners Guide FX

The document discusses candlestick patterns in technical analysis. It explains that candlesticks use open, high, low, and close prices to visualize market movement over a period of time. Bullish candlesticks have closes above opens and are typically white, while bearish candlesticks have closes below opens and are typically black. The size of the candlestick body indicates the strength of movement. Longer shadows provide information about price fluctuations above and below the open/close range. Different timeframes like minutes, hours and days are used to analyze trends over various periods. Common objects like trendlines, horizontal lines, rectangles and arrows can help identify support/resistance and signal trend direction changes.

Uploaded by

Khebz Fx
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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THE CANDLESTICK TRADING BIBLE

What is a candlestick?
Japanese candlesticks are formed using the open, high, low and close
of the chosen time frame.

-If the close is above the open, we can say that the candlestick is bullish
which means that the market is rising in this period of time. Bullish
candlesticks are always displayed as white candlestick.
The most trading platform use white color to refer to bullish
candlesticks. But the color doesn’t matter, you can use whatever color
you want.
The most important is the open price and the close price.
-If the close is below the open, we can say that the candlestick is
bearish which indicates that the market is falling in this session.
Bearish candles are always displayed as black candlesticks. But this is
not a rule.

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THE CANDLESTICK TRADING BIBLE

You can find different colors used to differentiate between bullish


and bearish candlesticks.
-The filled part of the candlestick is called the real body.
-The thin lines poking above and below the body are called shadows.
-The top of the upper shadow is the high
-The bottom of the lower shadow is the low.
Candlestick body sizes:
Candlesticks have different body sizes:

Long bodies refer to strong buying or selling pressure, if there is a


candlestick in which the close is above the open with a long body, this
indicates that buyers are stronger and they are taking control of the
market during this period of time.
Conversely, if there is a bearish candlestick in which the open is above
the close with a long body, this means that the selling pressure
controls the market during this chosen time frame.
-Short and small bodies indicate a little buying or selling activity.

12
THE CANDLESTICK TRADING BIBLE

Candlestick shadows (tails)


The upper and lower shadows give us important information about the
trading session.
-Upper shadows signify the session high
-Lower shadows signify the session low
Candlesticks with long shadows show that trading action occurred well
past the open and close.

Japanese candlesticks with short shadows indicate that most of the


trading action was confined near the open and close.
-If a candlestick has a longer upper shadow, and short lower shadow,
this means that buyers flexed their muscles and bid price higher.
But for one reason or another, sellers came in and drove price back
down to end the session back near its open price.
-If a Japanese candlestick has a long lower shadow and short upper
shadow, this means that sellers flashed their washboard abs and
forced price lower. But for one reason or another buyer came in and
drove prices back up to end the session back near its’ open price.

13
KhebzXMarkets

FOREX FOR BEGINNERS


• METATRADER 5 TUTORIAL(MT5)
✓ HOW TO USE DIFFERENT TIMEFRAMES

There are different timeframes in meta trader 5. The common ones are [1minute, 5minutes,
15minutes, 30minutes, 1hour, 4hours, 1 day, 1 week and 1 month].

For us Beginners we only going to focus on 1minute to 1 hour...

Timeframes show different directions but one movement.

▪ 1minutes to 5minutes is commonly used for short trades(scalping) and 15minutes to 4hours
for long trades.
▪ For better setups use 15min-4hours.

Anyway... Below are the screenshots for different timeframes. After 2 days you'll be able to
understand, keep practicing folks.

This is the timeframe and shown here is 1minute

13/01/2023
KhebzXMarkets

There is a video tutorial on how to change timeframes...

✓ HOW TO USE OBJECTS FOR SETUPS

13/01/2023
KhebzXMarkets

There are 4 commonly used objects, such as;

+ Trendlines
− I use it for the trendline breakout strategy.
+ Horizontal line
− I use it for stop loss and take profit.
+ Rectangle
− I use it for Support and Resistance strategy.
+ Arrowed line
− I use it for market direction.

Anyway, below are the screenshots for different objects. A video for how to find and use them will
be given.

Trendline

Horizontal line

Rectangle
Arrow

NB: I AM A BAD TEACHER, AND WILLING TO SHARE WITH YOU

Now open your mt5 and relate. Contact me for more understanding. +267 74809719 or email:
kabolerotsi31@gmail.com

13/01/2023

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