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When watching the Japanese candle stick graphs we usually pay attention on the historical prices of the certain currency pair including the support and resistance levels. The historical prices gives us more or less right information about what we can expect from the market in the nearest future and trade accordingly.

If examining a candle stick chart you notice that there is a huge trend so it must be a sign for any Singapore trader where the market is heading and what direction to trade. Before you start a trade you should also consider using the moving averages or Fibonacci levels and add the stop-loss orders accordingly.

There is another way of trading on candle stick charts. It is using the theory of support and resistance levels. According to this theory, if the price did not break the resistance, then it would return to the level of support. The support and resistance levels are analyzed for a period of few days, depending on the time frame of your trading. It is also very recommended to add Fibonacci levels to this strategy.

And now few words about Japanese candle stick analysis. This is an ancient method of construction of charts that was invented in Japan in the 17th century. A candlestick perfectly shows the battle between bulls and bears and displays a clear picture on which side is an advantage. In addition it indicates a moment when the fighters change their places.

Graphically a Japanese candlestick is composed of body and shadows. The upper shadow on the daily graph reflects the maximum that the price reached during the day, the lower shadow – minimum price. The body of a candle gives the price of opening and closing of a trading day. If a candle is white or green, so the closing price is above the opening one. If a candle is black or red, so it is on the contrary, the price at the end of the day was lower than the beginning of the day.

While analyzing a candle stick chart, we notice the figures that a group of candles make. Usually we need three-five candles in order to have a figure. The most vital figures in chart’s analysis are Falling Star and Dodges. These figures will let you know if a current trend is reversing or continues.

In Singapore Forex trading the Japanese candle stick analysis method is mostly used for a long term trade and for cross-rates like EUR/GBP. It works fantastic for trading in corridors by defining the historical trends. Forex trading in Singapore and Asia in general is mostly done on the Japanese candle stick trading and chart’s analysis. Today this method is well loved among the traders of the entire world as it provides with precise information about the market and helps increase the number of successful trades.

Download these 3 fantastic Trading Discipline audios plus the Risk & Money Management eBook by Norman Hallet FREE. Learn this powerful Fibonacci Retracement method FREE that pulls 500+ pips per trade. Master these Candlestick Patterns with this 82 page PDF FREE Candlestick Guide. Suppose you want to sell the stock because you believe that the price is close to peaking. The appearance of a candlestick pattern showing the trend is still in place and is expected to continue my help you exit at a still more profitable price. Thrusting Lines Candlestick Pattern is one such trend confirming pattern.

There are as usual two types of thrusting lines candlestick patterns-bullish as well as bearish. Bullish thrusting lines candlestick pattern is a long bullish candle on the first day. The second day or what you call the signal day, it is a bearish candle with a gap opening price higher than the high of the setup day. But, the close of the signal day should be above the midpoint of the setup day.

What this means is that on the first day, bulls had been in charge of the market. On the second day, bulls push a security to have a gap opening. This brings in some sellers but the bears are unable to push the price above the middle of the previous day. This means is that bulls are still around and are poised to take control of the market again.

This type of a candlestick pattern is a fantastic help if you are thinking of riding the trend, this is a signal that you can get on board as the trend is expected to continue and price will continue to go up.

The second vital candlestick trend confirming pattern is the bullish separating lines pattern. This pattern is formed when on the setup day, you find a long bearish candle meaning that the bears have been in total control throughout the days.

The second day candle is a bullish one with the open equal or nearly equal to the open of the previous day. This is the distinguishing feature of this pattern. The bullish separating lines confirm an uptrend. The setup day is bearish. The bears choose that the price is right to start selling.

But, on the signal day, the bulls come into play and start buying. There is so much bullishness in the market that the opening price of the signal day is equal to the opening price of the set up day. From that point on the bulls dominate the market and the uptrend continues.

Now both these candlestick patterns are rare and do not appear frequently. But when they appear during an uptrend, it means that the uptrend is going to continue. In the same way, bearish thrusting lines and bearish separating lines are formed in an opposite manner and confirm the continuation of the downtrend.

Learn Forex Magic Bullet! First test it on your Forex Demo Account. Master Candlestick Patterns with this 82 page FREE PDF Candlestick Guide! The most bullish of the candlestick pattern is the long white candle. It represents that day when bulls have been in total control of the market throughout the trading day pushing prices higher from the opening to the closing.

As prices rise through the day, sellers do come in but not enough to stop the prices from continuing to rise. When sellers do show up during the trading day, buyers buy from them and the prices go higher.

With the long white candle closing near the high of the day, this is an indication that the bulls aren’t done with their buying and will be back for more on the following day. What this means is that there wasn’t enough of the securities in the market to keep the buyers from pushing the prices higher.

In case of a right white Marubozu, the opening price is equal to the low of the day and the closing price is equal to the high for the day. Now, this might occur occasionally. For our purposes, a white candle may have some wick on its both ends. What this means is that the opening price in case of a long white candle will be close to the low of the day and the closing price will be close to the high for the day.

To figure out that you are indeed looking at a long white candle, determine the area covered by the body of the candle that is between the open and close. This area should be at least 90% of the distance between the high and low. If so, you have a long white candle.

On a long white candle day, a lot of price action is covered by a very small amount of time. Price action doesn’t go in one direction for that matter without retracing some part of it. This normal retracing of the price action gives you a chance to act on the signal provided by the bullish long white candle.

With long white candlesticks, the low price on the candlestick is a excellent support level. Support is the level where the buyers are expected to support the price of the stock or for that matter the security.

Now there are three variations to the long white candle. The long white Marubozu without any wick, this is the most bullish. The other is the closing white Marubozu. In this case, the close is equal to the high meaning there is no wick on the top. The other is the opening white Marubozu. In this case, the opening price is equal to the low meaning that there is no wick on the bottom.