You can keep a constant Win Rate
Reader’s message
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Hi Long,
Replying to the email you sent today
Question one stop losing money
Question two To read candlesticks properly
Question three Ive been trading for quite a few years now I really enjoy trading but i cant keep a constant win rate.
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First of all remove all Indicator.
Too much information cause confusion.
To read the candlestick properly
Use Daily chart
Because daily chart include all movement of the day.
And do not trade until the price close.
after price close then order.
these basics
You can stop losing money and
You can keep a constant win rate.
Thank you
Long
Use of Candlestick in Price Action Trading
Price action trading is one of the best methods traders use in the market.
Price action traders use the price movement of the market for making their trading decisions.
Trading price action only means that the traders have to cut off all the indicators used for making trading decisions.
But to know the price movements traders have to use candlesticks, bar charts or line charts.
Candlesticks are used by the vast majority of price action traders (rather than bar or line charts).
In fact, many believe candlestick is actually price action and a bar is just a moment in time.
A candlestick on its own does not give traders a history of a chart’s personality.
Traders have to look back and compare it to other bars.
While judging the candlesticks traders have to think and know the answers of some questions.
Is the price range much higher or lower?
Is the body or wick much bigger or smaller?
Where is the open compared to the previous bar’s close?
Is the bar bullish or bearish?
Is this with the trend or against it?
If there is a candlestick pattern forming is it relevant to the bigger picture?
A common mistake is to identify a candle as a doji, hanging man, or hammer (and so on) without thinking about where it is compared to other candlesticks.
If it’s in the middle of a sideways move then it has no major relevance.
The candle is not the price action – the sideways move is the price action.
So while it’s great to be able to recognize continuation or reversal candlesticks and patterns, traders have to remember
to only pay attention to them when they actually offer value.
Whatever traders use to know the price movement, they have to know the basics of those charts before using them.
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