Forex Trading Strategies Using Hammer Candlestick Patterns

Most textbooks are found to recommend you to go long as soon as you spot a hammer candlestick pattern. This, unfortunately, is not a piece of reliable advice as the pattern is not as straightforward as you may think it is, or rather as you are told it is. You may use it for direction and confirm with more key factors before you go for that long which you want to.

For those who aren’t familiar with the hammer candlestick pattern, let’s first try to understand the basics. The hammer is a single candle bullish reversal pattern which normally takes shape after a price pullback. It has a small or no upper shadow. The price is usually observed to close at the top ¼ of the range. The lower shadow can be two or three times the length of the body. When you see this on your chart, it generally means that sellers drove the price lower in a way that the buying pressure raises at the selling climax which then causes the price to dramatically increase. 

The buying pressure is normally strong enough to close above the opening price. In essence, all the lower prices are rejected in such a scenario and that’s the real catch to this pattern.

Now that we’ve understood what a hammer candlestick pattern is fundamentally, here are some of the key Forex trading strategies which include such patterns for maximizing opportunities.

Hammer Candlestick Patterns Forex Trading Strategies

1) Trade along the Trend’s Direction:

To determine if something is trending, you may use the moving average as an indicator. For instance, a price below 200MA denotes a short bias while that which is above 200MA denotes a long bias. A good way to improve the chances of successful Forex trading is to go along the direction of the trends instead of going against it. More often than not, it does result in profits.

Forex Trading Strategies Using Hammer Candlestick Patterns

2) Look for the Areas of Value:

On your chart, you will notice an area where the buying and selling pressure is lurking around, based on the support & resistance, channels, trendline, and more. This is known as an area of value (AOV). The crucial action here is to enter your Forex trades close to a potential AOV. This can be considered a calculated risk which yields favorably by rewarding you with profits. The stops are tighter here which improves the odds of a price hike.

3) Identify Entry Triggers:

To be on the safer side, you want to identify repeating patterns which show potential for successful Forex trades. Once you’ve spotted repeating nature, your conditions are for Forex trading setups are met with. Now, you proceed to look for entry triggers with your candlestick charts and make the trade only after having found a good one.

Using these key Forex trading strategies, you will be able to achieve immense success and dramatically augment your ROI! WesternFX houses an expert team which deals with Forex trading in Vietnam. We are known to deliver A1 solutions which yield amazing profits! If you require professional assistance with your trading, don’t hesitate to connect with us! We will be waiting to get in touch with you!

Why You Should Become a Forex Trader – Advantages of It

If the daily 9-5 slogging is starting to wear you out, Forex trading might just be the perfect solution for your troubles! A field becoming prominent today as a career opportunity but for many comes with a vast set of advantages that makes it so alluring. For some traders Forex acts as a retirement plan, for others, it's an exciting and daring venture to undertake. Either way, the profits are always there. With a well-planned approach, you will be able to catch profitable market trends ahead of time and make good money in your trades!
 

Here are 3 reasons why Forex trading is a great job opportunity today:
 

Benefits of Becoming Forex Trader

1) Starting Requirements are Basic: Don't have $10,000 to begin with? No problem! You can get started with Forex trading using amounts as minimal as $100. One of the greatest benefits of Forex trading is the low starting capital and the added leverage provided by Forex brokers. Many traders believe in the myth that currency exchange is for the rich, and a lot of money is needed to see good returns - it is not such! You can make a stellar winning with nominal capital and a planned approach; so if you are looking to get started, don't hesitate!
 

2) Ample Research Material Available: Research and education is the key to winning Forex trades. You will have to spend a good amount of time studying how trades function, the theory of each currency and how a trade goes on from start to finish. Luckily for you, a lot of research material is found online - and you can avail it for free! Many experts and Forex brokers post blogs, videos and trading tutorials for you to learn from.
 

3) Flexible Trading Mechanisms: Some traders aren't comfortable with long-term trades, and some want to trade longer. As a Forex trader, you can choose the approach you wish to follow. Short-term traders can scalp, swing trade or day trade their way out; and long-term traders can relax with a good position trading strategy in play.
 

Still shaky on your standing? Talk to one of our experts at WesternFX today! Proficient beyond comparison at Forex trading, our arsenal of professionals will be more than glad to provide you with the details and information you need regarding online trading or just normal currency exchange. And be it a practice Forex demo account or a live-trading platform - we will provide you with all the necessities! Call us today to know more.

What Should You Ask Yourself before Starting Forex Trading

Forex trading is an incredibly profitable career option, surely. However, it isn't a venture you can embark on blindly. There are several nuances to it, and you will need a firm understanding of foreign exchange to see success as a trader. The markets today are tremendously competitive, with both brokers and traders fighting it out for a piece of the $6 trillion trading value! With a risky field such insights, you will have to ask yourself some questions if you are considering pursuing it.
 

Ask yourself these 5 questions before you get started with Forex trading: 

Top Questions to Ask Yourself Before Starting Forex Trading

1) Am I Financially Equipped for This?
 

Having enough capital is important if you want to take part in Forex. Don't confuse this with richness! You don't have to be a millionaire, but you definitely need to have at least a few hundred or thousand dollars to start off. Before you consider Forex trading in Vietnam, ask yourself if you can handle financial requirements with comfort. Entering the markets and then realizing you are running short on cash can prove very harmful down the line!
 

2) How Efficient is My Strategy?
 

The quality of your Forex trading strategies has to be top-notch, and you should asses this before going live trading. Be it a simple approach or a complicated one, quality testing has to be done to make sure it doesn't fail when you are carrying it out in real-time!
 

3) Do I have the Necessary Market Knowledge?
 

You have successfully demo traded and are no moving to real-time trades, but do you have the market knowledge necessary? A live trade carries a lot of constraints, but the biggest risk is volatility. Without knowing how economic factors can disrupt your Forex trading exchanges, you are putting yourself at unimaginable levels of risk!
 

4) Am I Protected from Volatility?
 

Risk management is a concept you should brief yourself before trading. Be it studying stop implementation or going through large case studies, be aware of the consequences Forex trading volatility brings so you can avoid it!
 

5) Do I Want To Do This on a Long-Term Basis?
 

Lastly, the most important question, do you want to trade full-time? You can always opt for a half-time approach or have trading bots do your work for you. Take this decision with enough thought put in, it is life-deciding!
 

Many traders start Forex trading in Vietnam without any sort of backing and end up burning their capital swiftly. Don't make the same mistake as them! Call WesternFX today, and have a talk with one of our experts. We will patiently discuss with you about the prospects of the markets and guide you accordingly. With us by your side, you can go on to see success in your trades! Come partner up with us and let's get started!