Yo sen and In sen – reversal patterns and continuation of trend, which are well known traders in the Forex market. His popularity data patterns, and many other graphic figures Forex obligation to its simplicity. It odnoznachnye figures of the Forex market. They are easy to recognize on a chart on long bodies and the practical total absence of shadows.
Description of the pattern
Everyone who has at least a General idea of charts Japanese candlestick, it is obvious that such graphic figures Forex informs the trader about the trend with high potential.
Data patterns, especially in the classical form, i.e. without shadows is a continuation of the trend. However, optimistic traders should not be interpreted such statements clearly. The classic look of the Hay (no matter yo or Ying) occurs in real life very rarely. Yes, and the inherent odnorodnym figures dualism also should not be forgotten.
The figures of the Forex market consists of a single candle is relatively difficult to detect, but the problem is that using these technical figures Forex for speculative trading, the trader a constant balance between speed and accuracy of the signals generated. I.e. on short time frames the generated signals are frequently false, and on long time periods, their relevance is significantly reduced.
Further examples of characteristic medium-term trade (H1, H4)
Features of patterns
Continuation patterns of the trend to which the trading community will take under consideration the patterns, to put it mildly, are not self-sufficient. Being guided solely by their signals difficult to make categorical decisions, even about the prevailing market trends. To evaluate the potential and momentum of the market with their help it is impossible.
All of the above is true, in varying degrees, applies to all shapes of candlestick analysis, but yo sen and In sen have every reason to be considered leaders of the ambiguity.
The reason for this lies in the nature of their formation. For example, if a pattern is formed ahead of or immediately after important economic news, then it’s safe to say that the current trend received a powerful confirmation of the news and boldly to enter the market with the trend. But keep in mind that there is a high probability of correction after the breakthrough.
If shadowless candle is crowned with a prolonged sideways movement, it is possible with high probability to assume that there is the emergence of a new trend, which, interestingly, will develop in the direction opposite to the direction of the signal candle. Thus, instead of continuation patterns, there is a model of a turn, with all the ensuing consequences.
Often candles without shadow preceded by a significant Gap, which with high probability will take the trader at the “island”, the height of which will be within the signal candle.
Trade in black-and-white patterns
Candles without shades, of course, deserve the attention of the trader, but, as already mentioned, they are not self-sufficient. For making trading decisions, you need to use at least a reliable oscillator.
Medium – and long-term charts are appropriate to use as backup for pattern Fibonacci levels. In this embodiment, the signal candle is the basis for stretching the line. But it is also necessary to monitor the levels of oversold and overbought trading instrument.
This pattern should be used as a signal to enter the market, and as a signal for detailed analysis of the market of a particular trading instrument.
No matter how the market has reacted to the powerful breakthrough price of the trading instrument, the size and direction of the signal candle will be a good reference point when planning trading operations. For example, often the candle without shadows is preceded by a prolonged sideways movement of the price chart. In this case, the prices of opening and closing the signal candle will be a solid wall of price range.