BeatBen Knowledge

For instance Ben the trader sends a signal on Volatility 10 with Price: 8568.50 Stop Loss: 8570.63 Take Profit: ? Lot Size : ? a. The lot size and take profit comes empty for a reason, reason being that everyone has a different account size/balance and risk capacity so there is a need to use a lot size that corresponds to the amount you want to risk on that signal: someone maybe comfortable losing -($20+) on a trade but let another person lose -$20 on a trade or per day and he/she won't know peace, to this person that amount is a whole lot to him. b. Again, one's level of satisfaction may differ from the next person hence Take Profit should be your decision to make. Some may be okay risking $20 on a trade and in return make a profit of $100 (1:5), another person will say urmm I am okay making 3x my risk in profits (1:3), somebody too is okay with just 1:1 meaning if he/she is risking $20 he just wants to make $20 in return.

As a good trader, money/risk management should be a priority. Before you place any trade you should have made some analysis and calculations. In here we do the analysis and give you the entries (signals), so you are spared from analysing charts but as users of our signals you have to get some cals done: the amount you want to risk, your lot size and your take profit, we cannot stress on this enough.

Read through this thoroughly new members and as for old members, this should refresh your memories. Let' s Go 🏃🏽

Before we continue our lessons from last week, I want to address the last quiz where majority of you chose : ''moving stop loss to entry and taking partial profits'' as your answers. Those are your opinions probably because you don't know or that is what you believe to be right. Permit me to share my views and why I think ''Closing trades at the least minus'' is the right answer.

Time to take some tests 🖊

Okay guys, got your feedback. Will continue this next time. Stay tuned

If you want to get the most out of what the candlesticks are showing, let’s explore the best candlestick patterns you can ever use. We're going to show you some candlestick patterns explained with examples. If you understand the psychology behind what the candlesticks are showing, it can make your life as a trader a lot easier. Not only that, you get a possible insight into the battle between the buyers and sellers. Chart patterns can also be used to trigger your trades.

Candlestick patterns are one of the most powerful trading concepts, they are simple, easy to identify, and very profitable setups, a research has confirmed that candlestick patterns have a high predictive value and can produce positive results.

The body length indicates BUYING or SELLING PRESSURE. If a BULLISH candle that is CLOSE above the OPEN with a long body, it means there is a STRONG BUYING PRESSURE, which means the buyers have gained control of the Market in that time. On the other hand if the BEARISH candle which is OPEN above CLOSE with a long body, it means SELLING PRESSURE controls the Market in that time. The short and small body, on the other hand, shows little activity of buying or selling.

A candlestick consists of a body and two wicks. The body of a candlestick is drawn as a rectangle, which marks the open and the close of a period. The wicks are drawn as two vertical lines above and below the body, which marks the high and the low that price has achieved for the period - Bullish candlestick – These are green candles and it shows that that the price has increased over the selected time period. In other words, the closing price is higher than the opening price. - Bearish candlestick – These are red candles and it shows that the price has decreased over the selected time period. In other words, the closing price is lower than the opening price. - Neutral candlesticks – These are candles without a body and the opening price is equal to the closing price. e.g. the doji candlestick. (you will understand it more in subsequent lessons)

Candlestick chart has some special qualities and that’s the reason it is preferred by most traders. So the special quality of a candlestick is that it displays the open, high, low and close prices of a stock. It is named candlestick because it resembles to a real candle with a wick. A candlestick consists of two major things. i. The body of the candle ii.The wick of the candle The body is formed by the range between the open and the close for a particular time frame. Whereas, the wick represents the high and low hit by the stock in the same time frame.

Candlestick Chart: This chart is created much like bar charts, with the only difference being that candlesticks add dimension and colour to the Bar Chart by depicting the area of the bar between the open and close as a two dimensional real body. Candlesticks are comprised of a body which represents the difference between the open and close prices. An up candlestick occurs when the close is higher than the open – and down candlesticks occurs when the close is lower than the high. In the chart example above, up candlesticks are green whilst down candlesticks are red. If the open is equal to the close there will not be a body, just a line – this type of candle is referred to as a “Doji”. The thinner lines extending beyond the body are called ‘Wicks’ – above the body is the high and below the body is the low for the selected time period. A large wick (relative to the body), indicates a potential turning point (support/resistance).

Bar Chart: The chart is created with the use of bars where each bar has a high (top) and a low (bottom) with a line on either side; right side being the opening price and the left side being the closing price for the selected time period. Different colours can be used to identify bars that close higher than the open (bull or up bars) or lower than the open (bear or down bars). The example above has green lines for up bars and red bars for down bars. These charts show all the information you need but most traders and analysts tend to favour the third option – Candlestick charts.

Line Chart: These charts are handy for quickly determining the trend – only the current/close price is graphed – as such these charts should not be used for placing stop loss or take profit orders.

Forex traders use charts to determine market direction and identify possible buying and selling opportunities. There are three types of charts commonly used in forex: Line chart; Bar chart; Candlestick chart.