London Close Trading Strategy

Recurring Forex Patterns

Hi Vic and Shirley, Thanks for a great strategy ...the BEST is that it is time specific !! Just like a lot of other traders, I do have another career and can't be in front of the charts during the day. I saw the Kiwi being a prospect and followed the "rules" :) with + 16 and + 22 respectively ! Looking forward to learning more about it from you two ! Best Regards, - Edna M.

Hi Vic, Thanks to you and Shirley for presenting the london Close Trading method. I really feel like this will be a great method to add to my toolbox to help me be successful trading the forex market. Your emphasis on using support/resistance really hit home for me. I've heard about the Noble entry method from Kathy but i was never sure how to utilize it in my trading. I look forward to future success and putting it all togeather using this method. - Mark V.

*Testimonials are not indicative of future performance or success in addition to the fact that they are unsolicited.

Using Candle Stick Patterns In Forex Trading

Candle sticks are probably the most common chart type for charting forex price action, but I think traders really tend to miss some of the important information that candles give you.

There can be lots of reasons for this. In many cases “indicator fascination” gets in the way of sound chart reading. In my humble opinion, based on over 30 years of trading, 5 ½ years as a futures broker, and almost 4 years as a personal trading coach, nothing matters more than price itself. Learn to read price action accurately, and you’re off to the races.

Don’t get me wrong, indicators do have their place, but they’re just tools (and most tools lag price), so it’s important to learn to read indicators properly as well…but that’s another story for another time.

Now you should understand that all candle sticks are not created equal. What this means is that a “hammer” pattern may or may not be significant. It really depends on when and where the hammer occurs. If you just blindly try buying and selling based on recognizable candle formations, you’re heading for problems.

More specifically, you’ll find that during choppy, sideways price action, candle stick patterns really don’t’ mean much.

However, let’s say price breaks of a range, to the upside. If that happens, it’s time to start paying attention. Why? Because it won’t go up forever. It will stop once it reaches resistance. And knowing where to expect resistance is a very powerful piece of information, and it’s definitely a skill that can be learned.

Once price reaches an expected resistance level, it’s then time to start watching candle formations. For example, if price hits expected resistance, and gets soundly rejected at that level, forming an inverted hammer, you want to be thinking about getting short (selling). And of course there are a variety of ways to do this that are beyond the scope of this article.

On the other hand, if price has not reached expected resistance and is simply in an uptrend, then this is the idea situation to watch for pullbacks to support levels for buying opportunities. T

A great clue to buy after the pullback in an uptrend, will be a bullish candle formation, at an expected support level. If you see this, then the trend is probably ready to resume to the upside.

Now I’m aware that entire courses have been written about candle sticks, but candles are really not a big deal. In my humble opinion, you certainly do not need to learn about all the different patterns, and strain your eyes tying to make sure you don’t miss the next great run in price.

Learn just a few of the basic patterns for both buying and selling, and see if they show up at key levels on higher time frame charts. If they do, then it’s time to start looking for a trade. If not, sit on your hands and wait!

One more very important point to make is that by waiting for price to react off of a certain level before committing funds to the trade, you’re forcing price to “prove” itself by actually turning around and showing a candle stick reversal pattern.

I hope you’ve found this article helpful!

All the best!

Vic Noble

**To learn more about forex trading and how I teach, I have a FREE e-Book, plus 7 great videos on key trading concepts that I believe will genuinely help you. No obligation, just good useful information!

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