I thought today I could get into a little more about the best forex trading signals. This is probably the most important things you need to learn after you get the basics down. You need to able to look at a graph and go “hey, that currency will probably go up, I should buy.”
All the signals I give here will come from candlestick graphs. I like these the best since they have the best information on it. If you’re unfamiliar with these types of graphs, you’re to notice rectangular boxes with vertical lines coming out the top and/or bottom known as the shadow. Each rectangle will be green (gone up in trading) or red (gone down in trading).
Spinning Tops:
In this particular case, you’re going to notice a candlestick with a very small body, but you’ll also observe a very long shadow coming out the top and bottom. In this case, the color doesn’t matter. The long shadow coming out the top and bottom means there is heavy buying and selling. It’s very busy and there is a lot going on. The problem is that the body is small, which means no trend is emerging. When a currency is busy and body is small, that means it’s not in a trend yet, but it’s going to be going into one soon. The best way to identify the direction is to look at how the currency has been acting previously. If it used to have a big green body and now it has a small green body with long shadows sticking out of it, you can be pretty sure it’s going down. You can always apply the same logic to see if it is going up.
Doji:
This one is very similar to the spinning tops except this case you’re going to have no body (or like a sliver of it). It doesn’t matter what the shadow is in this case. Basically this is an easy way to determine if a currency is going up or down. If you’ve been watching the currency and it had a green body and now is in a doji, you can be pretty sure it’s going down. If you’ve been watching the currency and it had a red body and now is in a doji, you can be pretty sure it is going up.
These are pretty simple, but they’re the best forex trading signals you can move on. No one said that this was complicated, it’s just knowing the right moves at the right time.
