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How can you make money trading with candlestick charts?

Andrew Lokenauth
Finance Executive
Andrew Lokenauth is a Finance Executive who has over 15 years of experience working on Wall St. and in Tech & Start-ups. Andrew helps management teams translate their financials into actionable business decisions. He has held positions at Goldman Sachs, Citi, and JPMorgan Asset Management. He is the founder of Fluent in Finance, a firm that provides resources to help others learn to build wealth, understand the importance of investing, create a healthy budget, strategize debt pay-off, develop a retirement roadmap, and create a personalized investing plan. His insights have been quoted in Forbes, TIME, Business Insider, Nasdaq, Yahoo Finance, BankRate, and U.S. News. Andrew has a Bachelor of Business Administration Degree (BBA), Accounting and Finance from Pace University.

Andrew Lokenauth

Finance Executive

Expert Answer

You make money with candlestick charts based on trends and patterns. Charting is based on data and patterns over time, so you need to learn the different types of patterns. Once you learn them better, you'll be better and executing when, what time, and how to trade.

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How do you use Forex signals?

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Forex signals are bits of information that you can get about the market from a signal service, such as an app, email alert service, or texting service. Some signals may simply provide information (such as current market prices), while others can advise you to take certain actions, like buying or selling. Get familiar with the format used by your chosen signal service so you know what the signals mean and how to use them.

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How do you read Forex charts like a pro?

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Once you get familiar with the basics of reading Forex charts, you’ll need to spend a lot of time practicing. After a while, you’ll not only be able to read the charts quickly, but you’ll get a sense of the typical trends and patterns and what they mean.

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How do you predict Forex charts?

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You’ll need to spend time learning how to recognize and analyze trends. After a while, you’ll get a sense of the common patterns and develop a stronger intuition about what they mean and how they’ll play out.

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When I buy and there is an upward trend, what would be the best time to close the deal?

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There's no perfect answer to that. Ideally, the best time would be at the highest point, before the price started going down. However, you don't really have any way of knowing if the upward trend will continue. As long as the price is still higher than it was when you bought, you'll profit off of the sale. The higher the price is than the price you paid, the more you'll make. It's simply a matter of how long you're willing to wait to see if the trend continues.

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Question

How do I know when to enter a trade and exit?

Donagan

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It's not possible to give you a good answer. Successful forex traders will tell you there is an art and a science to it, a mix of knowledge, intuition, and luck. Even for experienced traders there's an element of gambling involved.

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What do "closing" and "opening" mean in Forex trading?

Donagan

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They are respectively the final and beginning prices of a specific currency in a trading day.

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Question

If the prices represent opening and closing during the day, who and what decides when something opens and closes? Or is it just denoted by the time frames?

Community Answer

If you are referring to the use of candlestick, which I suspect you are, the opening and closing is arbitrarily set by time frame in, say, one minute, five minutes, ten minutes, one hour, two hours, or one day. Your platform makes it available for your use as a decision tool.

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What is the difference between stop loss, hold and take a profit?

Donagan

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A "stop loss" is an instruction to a broker to sell a security you own before its price falls below a pre-determined point. "Hold" means to retain ownership of a security. "Take a profit" means to sell a security after it has risen in value above the price at which it was purchased.

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What is the right amount for the beginners to start with forex trading?

Donagan

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Invest the minimum amount your broker will accept to begin with. Gain some experience before you invest more.

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Question

I have downloaded a demo account but I have never placed a trade before. How do I do so?

Donagan

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See Trade Forex .

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How do I see the right time to trade?

Donagan

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See Make Money in Forex .

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Question

If I decide not to close my loss and I decide to leave it to raise until it becomes a profit, can my broker forcibly close it down?

Donagan

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No. Brokers do not force their clients to sell holdings.

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