Profitable Forex Trading Strategy - Candlestick Patterns

The Forex currency exchange is the largest financial market in the world and allows traders to capitalize upon currency trends to generate profits. There are many Forex trading strategies a currency trader could use to profit in this business. This article explains what specific candlestick patterns we look for to make some very profitable forex trades.

Candlesticks in Forex Trading - There are a few things you need to know when trading candlesticks. In my experience, the 30 minute charts are the best ones to use when trading candlestick patterns. You must always wait for the candles to complete to make sure the candlestick pattern is complete. Do not guess where the candle will close and try to get into a trade early.


There are many other candlestick patterns, however some are more dependable than others. The ones I use are called engulfing patterns. Specifically "Bullish Engulfing" and Bearish Engulfing". Both of these are reversal patterns and are considered to be some of the most profitable candlestick patterns to trade. When the candle body engulfs the previous candles body, this is called an "engulfing" pattern. Bullish engulfing patterns are found at price bottoms and bearish engulfing patterns are found at price tops.

How to Trade Engulfing Candles - To trade engulfing candle stick patterns, we're looking for an end of an uptrend or downtrend. This doesn't have to be a strong trend but it does need to have some momentum that looks like it's coming to an end. A good indication of a trend coming to an end is when the bodies of the candles are getting smaller in size. That means the momentum may be running out and this is when you should be looking for a reversal in price action. This could also be the beginning of a consolidation period, so we need to be aware of that.

In an uptrend, we look for an "up" candle immediately followed by a "down" candle, where the body of the "down" candle engulfs the previous "up"' candle. This is the setup we want to see so we take the short trade immediately following the close of this candlestick. Next, we count how many pips away the top of the highest last 2 candles are, including the wick, and add 5 pips. This is our Stop Loss. Our Take Profit target should be set to twice this value. For example, if our stop loss is 40 pips away, then our take profit should be at least 80 pips. Money management/risk to reward ratio, are key in this business. A long trade would be similar to a short trade except we're looking for a downtrend reversal to get into a trade.

You can search around the web for forex candlestick patterns and learn all you need to know about them, but remember there are so many of them, you need to just focus on a few. As I mentioned, the engulfing candlestick patterns are some of the best patterns to trade so if you stick with those, you'll do very well.

Profitable Forex Trading Strategy - Candlestick Patterns

Andrew Daigle is the owner and author of many successful websites including ForexBoost, a free Forex educational site to learn Forex trading strategies and partners with Forex Confidential for live trading sessions and their very profitable forex trading signals [] service.

Profitable Forex Day Trading Strategy

If your a day trader there is a few key components to have if you want a profitable strategy. The first and most important thing is support and resistance lines. Get yourself an indicator to plot out daily pivot points for you, then hand draw trend lines and put in key resistance areas your pivot point indicator might have missed. These lines are your road map for the day. They will tell you if your on the right track or lost in the woods.

You could easily trade with just these things on your chart. Sell when price bounces off resistance and buy when its bouncing off support. Use trend line breaks and bounces to confirm your entries. If price is following a trend line strongly then place trades when price comes close then ride the bounce. If price breaks through a trend line near support or resistance then enter a trade.


If your having problems trading like this then you might have to learn some candlestick patterns to narrow down your entries and increase your win rate. A good day trader knows every candlestick pattern and how the pair he is trading normally reacts after. I'm sure you could get away with knowing some basic formations and stick with major pairs.

using candlestick patterns at support and resistance lines will greatly improve your trading. A profitable day trading strategy is not hard to achieve in the forex market. If you stick to your trading plan and let price action tell you what it wants to do then you can definitely become a profitable trader.

If you are having a hard time go back through your charts and watch how price reacts after candlesticks like pin bars, engulfing bars, dojis, and so on. After you have a good idea go back to practice some more. Trading is like anything in this world, if you want to be good your going to have to practice.

I hope you enjoyed my profitable forex day trading strategy, Happy Trading.

Profitable Forex Day Trading Strategy

I have only been trading the forex market for 2 years now. I have learned a lot in this time though. If you like my article why not check out my blog? My blog has lots of great strategies and I keep track of all my trades there!

Steps to a Family-Nurturing Communication Strategy

Family "meetings or gatherings" on a regular basis begun early with your young children, can present the perfect arena for creating and sustaining a value infrastructure of nurturing communication your family.

"Family-dinner-time" is enjoying a resurgence. Advertisers of food products and "eating in" are jumping over each other to promote the trend. Take advantage of it, it's a good thing


Step One: Start During the Christmas Break.

o Everyone in the family is more relaxed. The Christmas tree lights etc. offer an environment of softness.

o Schedules are less likely to interfere with the amount of time you can spend together.

o By the time the kids return to school it'll already be a family habit.

Step Two: Parents should talk it over first.

o Make sure you're united in the effort and its objective.

o It won't work if you are not in agreement about the value of family gatherings.

Step Three: Plan How to Tell the Family.

o Make sure when you introduce the idea of gathering together that the environment is encouraging and upbeat.

o Don't sabotage the whole idea before it even begins. It would be better not to rush if either parent is too negative.

My husband and I started our system of family-nurturing communication when our children, now adults, were four and seven. It lasted throughout their teens. The dynamics changed often to adjust to their needs but the foundation of sibling-support and respect did not. Having a regular discussion time helped our children know they could talk to their father and me about their concerns; it also brought about courtesy at home.

Steps to a Family-Nurturing Communication Strategy

Huldah Gibbs Jones, a retired Vision Therapist, was Technical Director of the Orthoptic Center of Helene Fuld Medical Center in New Jersey

The Relationship of Inflation to Interest Rates

Why ever do interest rates exist? Who in the world invented such a torturous tool that makes your initial loan more expensive than it really was? After all, aren't we borrowing money for the simple fact that we are short of it? Heck, such opportunism really can buy you an express ticket to the netherworld.

But are interest rates really the work of the devil as some people say? Before we come to understand interest rates, we must first understand the factors that affect it. One of these factors is "inflation".


Inflation can be described as the power of your one dollar to purchase items. It is related to the Consumer Price Index or CPI. Now the CPI measures the percentage increase of basic commodities through a pegged year. The pegged year is normally a year in which the economy for that country performed exceptionally well. Now the list of these commodities is entirely at the discretion of the nation's economic managers. Why? Because the world is full of different cultures. Some cultures are heavy rice eaters, while others prefer corn. Some are heavy wheat consumers, while others aren't. What is a basic commodity in your country may not necessarily mean that it applies to another.

Anyway, back to inflation. When prices increase, your dollar gets to buy less. Over time, prices tend to steadily increase. Hence, your one dollar today is not necessarily equivalent in value to your one dollar tomorrow. A case in point: if you could buy four comic books with your one dollar when you were younger, guess what, Batman? You can't even buy one these days at that price. That is inflation.

So how is this related to interest rates? Investors, try to preserve the value of their money by investing in activities that have yields that are either equivalent or higher than the inflation rate. Let's say that the local interest rate is pegged at 6.5%; the money that you earn, save and invest, should be able to at the very least, match that rate. Why, because at the end of the year, if your money stayed inside the piggy bank, its value would've been eroded by that rate. So if you save 100 dollars at the start of the year, at the end of the year its worth would've been shaved by .50 leaving your 0 worth only .5.

In developed economies, bank savings interest rates normally equal that of the inflation rate. If competition is fierce between banking institutions then you will get higher interest rates thus more yield for your money.

So who decides on the interest rate to be used? Normally, it is the central bank of the country. Bear in mind that the rate they will declare is not something that needs to be followed. It is a benchmark, thus anything below that level automatically is a loosing proposition for your investment.

So to wrap up, inflation is one of the factors that affect interest rates. When inflation moves up or down, the tendency is to increase or decrease the benchmark interest rate as well.

The Relationship of Inflation to Interest Rates

Michael Russell Your Independent guide to Interest Rates

Coping with Change: Develop Your Personal Strategy

Why do we resist change?

As the saying goes, the only people who like change are busy cashiers and wet babies. We find change disorienting, creating within us an anxiety similar to culture shock, the unease visitors to an alien land feel because of the absence of the familiar cues they took for granted back home. With an established routine, we don't have to think! And thinking is hard work.


Change is a business fact of life

Is your company is currently undergoing major changes that will affect the lives of all of its employees? These changes are probably in response to the evolving needs of your customers. They are made possible because of improvements in telecommunications and digital technology. They are likely guided by accepted principles and practices of total quality management. And you can expect that they will result in significant improvements profitability--a success that all employees will share. Because our customers' needs are NOW, we must make changes swiftly, which means that all of us must cooperate with the changes, rather than resist them.

How do we resist change?

We tend to respond to change the same way we respond to anything we perceive as a threat: by flight or fight. Our first reaction is flight--we try to avoid change if we can. We do what futurist Faith Popcorn calls "cocooning": we seal ourselves off from those around us and try to ignore what is happening. This can happen in the workplace just by being passive. We don't volunteer for teams or committees; we don't make suggestions, ask questions, or offer constructive criticism. But the changes ahead are inescapable. Those who "cocoon" themselves will be left behind.

Even worse is to fight, to actively resist change. Resistance tactics might include negativity, destructive criticism, and even sabotage. If this seldom happens at your company, you are fortunate.

Take a different approach to change

Rejecting both alternatives of flight or flight, we seek a better option--one that neither avoids change nor resists it, but harnesses and guides it.

Change can be the means to your goals, not a barrier to them.
Both fight and flight are reactions to perceiving change as a threat. But if we can change our perceptions, we can avoid those reactions. An old proverb goes, "Every change brings an opportunity." In other words, we must learn to see change as a means of achieving our goals, not a barrier preventing us from reaching them.

Another way of expressing the same thought is: A change in my external circumstances provides me with an opportunity to grow as a human being. The greater the change is, the greater and faster I can grow. If we can perceive change along these lines, we will find it exciting and energizing, rather than depressing and debilitating.

Yet this restructuring of our perspective on change can take some time. In fact, coping with change follows the same steps as the grieving process.1 The steps are shock and denial that the old routine must be left behind, then anger that change is inevitable, then despair and a longing for the old ways, eventually replaced by acceptance of the new and a brighter view of the future. Everyone works through this process; for some, the transition is lightning fast, for others painfully slow.

Realize your capacity to adapt.

As one writer put it recently:

Our foreparents lived through sea changes, upheavals so cataclysmic, so devastating we may never appreciate the fortitude and resilience required to survive them. The next time you feel resistant, think about them and about what they faced--and about what they fashioned from a fraction of the options we have. They blended old and new worlds, creating family, language, cuisine and new life-affirming rhythms, and they encouraged their children to keep on stepping toward an unknown but malleable future.2

Human beings are created remarkably flexible, capable of adapting to a wide variety of environments and situations. Realizing this can help you to embrace and guide change rather than resisting or avoiding it.

Develop a coping strategy based on who you are.

Corporate employees typically follow one of four decision-making styles: analytical, directive, conceptual, and behavioral. These four styles, described in a book by Alan J. Rowe and Richard O. Mason,3 have the following characteristics:

    Analytical Style - technical, logical, careful, methodical, needs much data, likes order, enjoys problem-solving, enjoys structure, enjoys scientific study, and enjoys working alone. Conceptual Style - creative and artistic, future oriented, likes to brainstorm, wants independence, uses judgment, optimistic, uses ideas vs. data, looks at the big picture, rebellious and opinionated, and committed to principles or a vision. Behavioral Style - supportive of others, empathetic, wants affiliation, nurtures others, communicates easily, uses instinct, avoids stress, avoids conflict, relies on feelings instead of data, and enjoys team/group efforts. Directive Style - aggressive, acts rapidly, takes charge, persuasive and/or is manipulative, uses rules, needs power/status, impatient, productive, single-minded, and enjoys individual achievements.

Read once more through these descriptions and identify which style best describes you. Then find and study the strategy people who share your style follow to cope with change:

    Analytical coping strategy - You see change as a challenging puzzle to be solved. You need plenty of time to gather information, analyze data, and draw conclusions. You will resist change if you are not given enough time to think it through. Conceptual coping strategy - You are interested in how change fits into the big picture. You want to be involved in defining what needs to change and why. You will resist change if you feel excluded from participating in the change process. Behavioral coping strategy - You want to know how everyone feels about the changes ahead. You work best when you know that the whole group is supportive of each other and that everyone champions the change process. If the change adversely affects someone in the group, you will perceive change as a crisis. Directive coping strategy - You want specifics on how the change will affect you and what your own role will be during the change process. If you know the rules of the change process and the desired outcome, you will act rapidly and aggressively to achieve change goals. You resist change if the rules or anticipated results are not clearly defined.

Realizing what our normal decision-making style is, can enable us to develop personal change-coping tactics.

How can we cope with change?

Getting at least this much comprehension of the big picture will help us to understand where each of us fits.

2. Do some anchoring. - When everything around you is in a state of flux, it sure helps to find something stable that isn't going to change, no matter what. Your company's values (whether articulated or not) can provide that kind of stability for you. Ours include the Company Family, Focus on the Customer, Be Committed to Quality, and Maintain Mutual Respect. These values are rock-solid; they are not going to disappear or rearrange themselves into something else. Plus, each of us has personal values that perhaps are even more significant and permanent. Such immovables can serve as anchors to help us ride out the storm.

3. Keep your expectations realistic. - A big part of taking control of the change you experience is to set your expectations. You can still maintain an optimistic outlook, but aim for what is realistically attainable. That way, the negatives that come along won't be so overwhelming, and the positives will be an adrenaline rush. Here are some examples:

Invest time and energy in training. Sharpen your skills so that you can meet the challenges ahead with confidence. If the training you need is not available through Bowne, get it somewhere else, such as the community college or adult education program in your area.

Get help when you need it. If you are confused or overwhelmed with the changes swirling around you, ask for help. Your supervisor, manager, or coworkers may be able to assist you in adjusting to the changes taking place. Your human resources department and any company-provided counseling services are other resources available to you.

Make sure the change does not compromise either your company values or your personal ones. If you are not careful, the technological advances jostling each other for your attention and adoption will tend to isolate you from personal contact with your coworkers and customers. E-mail, teleconference, voice-mail, and Intranet can make us more in touch with each other, or they can keep us antiseptically detached, removed from an awareness that the digital signals we are sending reach and influence another flesh-and-blood human being.

Aware of this tendency, we must actively counteract the drift in this direction by taking an interest in people and opening up ourselves to them in return. We have to remember to invest in people--all of those around us--not just in technology.

The "new normalcy"

Ultimately, we may discover that the current state of flux is permanent. After the events of September 11, Vice President Richard Cheney said we should accept the many resultant changes in daily life as permanent rather than temporary. "Think of them," he recommended, "as the 'new normalcy.'"

You should take the same approach to the changes happening at your workplace. These are not temporary adjustments until things get "back to normal." They are probably the "new normalcy" of your life as a company. The sooner you can accept that these changes are permanent, the better you can cope with them all--and enjoy their positive results.


1. Nancy J. Barger and Linda K. Kirby, The Challenge of Change in Organizations: Helping Employees Thrive in the New Frontier (Palo Alto, CA: Davies-Black Publ., 1995). This source is summarized in Mary M. Witherspoon, "Coping with Change," Women in Business 52, 3 (May/June 2000): 22-25.

2. Susan Taylor, "Embracing Change," Essence (Feb. 2002): 5.

3. Alan J. Rowe and Richard O. Mason, Managing with Style: A Guide to Understanding, Assessing and Improving Decision-Making (San Francisco: Jossey-Bass Management Series, 1987) cited in Witherspoon, "Coping with Change."

4. Emily Friedman, "Creature Comforts," Health Forum Journal 42, 3 (May/June 1999): 8-11. Futurist John Naisbitt has addressed this tendency in his book, High tech/high touch: Technology and our search for meaning (New York: Random House, 1999). Naisbitt co-wrote this book with his daughter Nana Naisbitt and Douglas Philips.

Coping with Change: Develop Your Personal Strategy

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Copyright ©2006 Steve Singleton

Steve Singleton has written and edited several books and numerous articles. He has been an editor, reporter, and public relations consultant. He has taught college-level Greek, Bible, and religious studies courses and has taught seminars in 11 states and the Caribbean.

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