London Academy Of Trading (LAT)
There are many Forex education systems on the market, but many, if not most, are created by individual traders looking for a platform from which to share their ideas. USDX calculation according to six currencies basket is not accidental – it coincides with the data which are used by the US Federal Reserve System during the calculation of trade and weighted dollar index regarding the currencies of the countries which form the main US foreign trade turnover.
In the next following sections, we will take a look at specific Japanese candlestick pattern and what they are telling us. Hopefully, by the end of this lesson on candlesticks, you will know how to recognize different types of forex candlestick patterns and make sound trading decisions based on them.
If I were you I would just focus on understanding pin bars and engulfing candles for the time being, the other patterns aren’t great and wont help much in making money from the market, if you stick to using things you understand I believe you’ll have more success than using things which are ambiguous such as other candlestick patterns.
There are many ways to load these data into Python but the most preferable when it comes to data slicing and manipulating is using Pandas We can always use the csv library to load data (and it might be faster) but we need to do some optimizations and processing first that as you will see it is pretty easy with pandas.
Once you become more familiar with the fundamental characteristics of candlesticks (and the more popular of the patterns), then you can use them in conjunction with support and resistance levels in order to better spot a potential reversal from the main trend, or better yet, a reversal from a corrective phase back in the direction of the main trend.
To better highlight or visualize price movements, modern candlestick charts (especially those displayed digitally) often replace the black or white of the candlestick real body with colors such as red (for a lower closing) and blue or green (for a higher closing).