Once you have determined the trend and the Key levels. The next thing you should look for on thechart is the TRADING SIGNALS.
Trading Signals are key clues that will tell you the next line of action to take. It helps you to know when to buy and when to sell. Most times traders lose because they don’t have an edge in the market. Trading is not just about seeing a big move and enters the market. You must have an edge you are looking for in the market. Once you see the set up, then you are okay to place your trade. Trading signals are our edge in trading. These are the keys we are looking for on the chart to determine whether to trade now or not. We will be dealing with the candlesticks charts for our analysis. To effectively and successfully trade profitably in the market, these are what you should trade (look for).
These signals are reliable, proven over time and they are consistent in giving you an edge to make money from the market.
Trading Signal One: The Pin Bar
Pin bar are candlesticks with a very long tail and a short small body at the opposite end close to the nose of the candlesticks. They look like this
You can see a very long tail with a small body close to the other end. It could be a bullish pin bar like this. Or bearish pin bar like this below.
What does Pin bar suggests?
Pin bar suggests rejection of a price level. It means anywhere it is form; market participants are rejecting either the low or high price in that zone. They tell you that the market sentiment has change and they always in most cases reverse the trend of the market. For instance, if a bearish pin bar is form at the top of an uptrend, it will reverse the trend to a down trend. Likewise when you find pin bar at the bottom of the trend, it means traders are rejecting low price and you should look to buy. Bearish Pin bar suggests SELL while Bullish Pin Bar suggest BUY.