A prominent analysis for making beneficial trade decisions in Forex Trade is Candlestick analysis. Candlestick analysis is mostly associated with dealing and effectively managing Support and Resistance.
The results of Candlestick Analysis prove more effective when you also keep in mind the current conditions of financial market as well. However you should consider the fact that you are dealing in unpredictable Forex Trade where every value is bound to change. The candlestick is a tool to predict the upcoming or future value of a certain currency. Thus work hard and use all effective tools including candlestick analysis to make a sound decision.
Let us assume a market situation where a deal attracts you at the resistance point of 1.4900. Candlestick shows you a bullish scenario. It means that it suggests you to wait for a while. Here the bulls represent buyers. Further you witness a good pattern of candlesticks with three bearish points. It is a clear signal of selling as bears represent sellers in candlesticks. Thus go for selling the currency. But do not forget to order a stop loss just above the point of resistance. This deal has made you to turn the tables in your favor. It is time to celebrate as you have succeeded in earning a huge profit.
A Fine Combination:
However you need to understand that you cannot be successful by relying only on candlestick analysis. You have to match it with the market conditions. You have to keenly observe the points of Support and Resistance. Just candlestick analysis cannot do wonders in Forex trade. You need to be smart enough to match and adjust them with current market environment.