In Forex trading price charts are a key component of the trade process. Analyzing currency pairs and devising an appropriate Forex trading strategy for the selected pairs will be an expert trader’s mindset. In these price charts, tailed bars are the most important. These tailed bars usually range between the opening and closing rates. They depict rejection in a particular price area; this exhaustion can be used to understand a lot of thing about the commodity.
Tailed bar strategies are preferred by several traders over others, especially in online trading in Malaysia. Here’s why:
1) Classic Pin Bar Candlestick Pattern: This pattern depicts a reversal in the price across a fixed time frame. The intensity of this difference increases with the time frame. The pin bar tail is opposite to the main bar, indicating that the price may move opposite to the current direction.
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| Forex trading in Malaysia |
2) Long Tailed Pin Bar Candlestick Pattern: In all of the trading, the long-tailed pin bars are the most significant of their kind. These patterns have a huge tail compared to the body. The implication is that – there’s a huge change coming. Whenever you see a pattern similar to this, stay extra cautious for the incoming price swing.
3) Double Pin Bar Candlestick Pattern: Double pin bars in charts are what shooting stars are to man, very rare and a sign of sorts. When double pin bars occur, they indicate a price rise/drop in the opposite direction. These can be practiced in a Forex demo account.
4) Small Tailed/Long-Tailed Bars: Small tailed bars are those that are existent but not significant enough to be called “pin bars”. Long tailed bars are those where the tail is relatively longer than the body. Though not pin bar, these indicate a fluctuation in the charts and ought to be watched out for.
Practicing your strategies on a demo module will help you understand the consequence of each move, and when to make one.
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