Dear Reader,If you haven’t had the chance yet to get Forex Autopilot, you need to get it now. The next lesson we’re going into detail on analyzing graphs. You need the software. I have a 75% discount coupon that I got from the owner. He was so pleased with this course, he offered it to those that are taking it because he knows he’ll have happy customers.
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We’re at lesson 4 of our course now and we’ve gone over a lot of this. I wanted to go into a little more detail with the candlestick graphs in this lesson, so we’ll start with that.
Being able to read the candlestick graphs will give you a better understanding of the market. I mentioned on the day 3 lesson plan that we had two candlestick colors; green and red.
Green: The price closed higher than it opened. Red: The price closed lower than it opened.
But I didn’t mention there this is a little more to this graph. The green and red colors are regarded as body, but you’re also going to have a line sticking out that is known as shadow.
With regard to the bodies, if it’s long and green, it means there was strong bidding pressure. The longer it goes the higher it closes above its open. Long red indicates a strong selling pressure. The longer the red, the further the close was compared to the open.
Shadow: If the candlestick has a long upper shadow and short lower shadow, it means buyers are aggressive and bids were very high, but sellers came in and drove the prices back down to end the session back near its open price.
If the candlestick has a long lower shadow and a short upper shadow, it means sellers are asking very low prices, but the buyers came in and moved prices back up, so the session is back near its open.
If you haven’t got Forex Autopilot yet, I supplied some pictures that you can look at. Remember these pictures are no substitute for the real thing. I just hope they help you understand.
Regular Candlestick:
Candlestick Closeup:
You’ll be able to determine a lot of the current market trends from the shadow. Different bodies and shadows determine different signals like spinning tops, doji, etc. I’ll go into that tomorrow though.
Now I want to step away from this chart stuff right now and talk to you a little about the types of trades you can make.
Market Order: This is about the simplest form of trade. You see something you want to buy, like EUR/USD at “x” value. You hit the buy button and you get it for that price. Easy and simple.
Limit Order: This is a little different. It basically allows you to set a buying price. If you’re watching a pair of currencies and you’re waiting for it to get up a little bit, than you’ll buy, but sitting in front of the computer the whole time seems like a waste of time. With a limit order you can set it to buy when it reaches that price automatically. You can also set a price to sell at after it buys it.
Stop-Loss Order: This is the most important feature your software should have. This is away to prevent a loss. Let’s say you’re looking at the EUR/USD at 1.2230. You buy, but you’re worried about losing money. You can set a stop loss at 1.2200. This means if the unfortunate should happen and the currency drops, it will automatically sell, so you don’t lose a lot more money.
This is exactly why I use Forex Autopilot. I can buy something and not have to sit in front of the computer worrying about what will happen. It allows me to leave the computer and do other things without worry. If you still haven’t got the Forex Autopilot software or any other software platform, you should get it because we’re just going into more detailed analysis about signals. Being able to follow along is important.
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