When you have entered the Forex market, no doubt you have entered knowing the risks of Forex. You can go out of money anytime in your account, there can a loss trade in your account but also, there are hopes that make you a participant in this high voltage trading platform. Different kinds of trading strategy and trading techniques have been in this Forex trading from the very early time. Japanese candlestick is also such a tool. It was originally used by the Japanese and a Western trader named Steve Nison learned this technique from his fellow traders in the market at that time.
But this candlestick did not come immediately into the market. Nison has studied and researched this technique. He also wrote about this technique. In the 1990s, Japanese candlestick technique gained popularity worldwide among the traders of the Forex market. Since then, Japanese candlestick has been in the market because of its simplicity and powerful interpretation of the complex Forex market in a undecorated way. Here, we are going to discuss some very few points why traders around the world follow this age-old technique even when there are much more advanced and complicated methods of explaining the market condition.
Reasons why Japanese Candlestick is popular
Clean and simple: Sometimes, following the old way is the best way. Japanese candlesticks have been developed in Japan many years ago and it has not changed much since. One of the main reason traders still like it for their analysis is because of its simplicity. It provides the situation of the full market with minimum intervention. It does not make your screen messy giving zigzag signal all over the display. If you look at the professional traders in Singapore then you will notice that all of them are trading CFDs with a simple system and making a decent profit in every single month.
Easy to interpret: Japanese candlesticks are very easy to interpret. By looking at a candlestick, you can say the market condition of the trade. If the buyers or sellers are strong in the market, if there is price level above the openings or the price has fallen off a trade after it has been opened. All can be understood by looking at the Japanese Candlestick easily. If you are relatively new in trading CFDs then you will have little bit difficulty at the very beginning but if you stick to it then within a few days you understand the basic behind the formation of the candlestick in the market.
Provides basic information: Forex market is all about making money and this Candlestick pattern provides you with the basic information to make money. You do not need to jam your head with unnecessary information and Japanese candlestick provides only the information that you need to know to execute the perfect trades in the market. But if you are new in trading CFDs then you can explore Saxo academy to understand the basic of the forex market.
Summary: There are many charts and patterns in the market. But this Japanese Candlestick is still being popular. Price action trading strategy is considered to be the most advanced trading strategy in the world and this system is also develop based on the Japanese candlestick. If you look at the professional traders in Singapore then you will notice that all of them are trading with high reputed brokers like Saxo and making a decent money just by suing the Japanese candlestick pattern in the trading chart.