Forex Systems Research Company Forex Trading Candlestick And Chart Patterns.pdf

Contents

Introduction ------------------------------ 2

Chapter 1 - W hat is Forex Trading? ------------------------------ 3

Chapter 2 - Japanese Candlesticks ------------------------------ 10

Chapter 3 - Chart Patterns ------------------------------ 22

Disclaimer ------------------------------ 49


1
Copyright © 2003 Forex Systems pany
All rights reserved worldwide
Introduction

Over the last 9 years we have put in thousands of hours of research and development to refine our trading
methods. Our trading methods have been tried and are functioning essfully. They work for us but we
cannot guarantee they will work for you. There are many trading systems available in the market, most of
them are mechanical and are based only on bination of indicators, and although they make money
for traders, the number of essful trades varies between 35 and 75 percent. By understanding the
market sentiment and by using chart and candlestick patterns, losses can be minimized. W hat we attempt
to do in this book is to take trading methodologies to a higher level by using bination of chart and
candlestick patterns with technical indicators. There is no single strategy that works essfully every
time. You need to use the strategy appropriate for the market conditions. The majority of the technical
indicators tell traders what has happened and are considered lagging indicators while chart and
candlestick patterns predict what will happen in the immediate future and can be considered as leading
indicators.

Trading is approximately 20% technical and 80% psychological. W ith the psychological side of trading,
it is important that you understand the sentiment of the market and have good money management skills.
To teach this would take hundreds of hours, this can only be essfully gained by hard work on your
part.

The main aim of this ebook is to go through the basics of forex trading and to share with you our tradin