What Turns Forex Indecision Candles Into Reversal Candles?
Direct from the desk of Dane Williams.
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What Turns Forex Indecision Candles Into Reversal Candles?
But forex indecision candles such as dojis are relatively usleless on their own. All they show is indecision in the market between buyers and sellers.
To turn an indecision candle into a reversal candle, we need to consider the preceding price action. Only then does the chart start to hint at what may happen to price in the future.
Take a look at the following examples:
If a doji forms within a downtrend, or in other words, after a series of strong bearish candles, the doji is signalling that the sellers are becoming exhausted and a reversal may be on the cards.
This is the earliest sign of the preceding bearish trend coming to an end as you are watching the sellers lose control before your eyes.
The same is also true if a doji forms within a bullish trend. Once again, that is after a series of strong bullish candles, the doji is signalling that the buyers are becoming exhausted and a reversal to the downside, may now be on the cards.
If you have any questions on what turns forex indecision candles into reversal candles, then leave a comment below and I'll be happy to have a chat.
Best of probabilities to you,
Dane.
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