How Indecision Candles Can Boost Your Trading Performance

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#576: How Indecision Candles Can Boost Your Trading Performance

In this video:

00:31 – What are Indecision candles and how do you use them?

01:11 – Examples of using an Indecision candle.

03:21 – Your trading edge.

03:57 - 17 minutes Masterclass and Book a Call.

04:48 – Blueberry Markets as a Forex Broker.

05:36 – Comments, Like & Subscribe.

05:45 – Improving your trading performance.

Today I'm going to talk about indecision candles, how to trade them, how you can use them, how you can take advantage of them, and how they will likely improve your trading performance. Let's get into that a more right now.

Hi Traders! This is Andrew Mitchem here at The Forex Trading Coach for a video on podcast number 576.

What are Indecision candles and how do you use them?

Outside again today, another stunning New Zealand summertime day. I want to talk today about indecision candles. They are candles that open and close at pretty much the same price. There are candles that are small so they can be called or look like a hanging man candle or a pin bar or doji, depending on where they show within the charts.

Now, do we trade them just by themselves? Absolutely not. You always need to have some form of confirmation candle after the indecision candle to give you the trade entry. However, they can be what I call an early warning system, and that can be really important to your overall trading success. I'll give you a few examples.

Examples of using an Indecision candle.

Let's say that you saw a big uptrend, and then the uptrend suddenly stalled and a indecision candle formed. It could be a hanging man pattern let's say. That's giving us the clue after the uptrend. That is some stage during that hanging man. That the sellers were in control and had started to push the market down. Now by the close of the candle the buyers had pushed it back up again. But it tells us that there are sellers out there within the market. And so the beauty of that is it gives you a clue of what could be coming.

Now the other important thing is to see that indecision candle bounce at a certain level. It could be a round number. It could be a previous high some form of resistance level to give you a clue that it's actually happening for a reason.

We don't still take a trade. We then need to wait for the next candle to form a bearish confirmation candle, and that then gives us the confirmation to go short. So a great way of saying well potentially there's a trade coming here. Now I've seen confirmation. Now I get in the trade as a reversal. Same thing with a continuation trade as well.

The other scenario could be that would help you is let's say you were in a trade. Let's say you in that same uptrend and you're not quite at your profit target. And you see an indecision candle. Well that's giving you again the same early warning signal to say potentially our uptrend could be coming to an end. You may not see the reversal signal come next and the trend might continue back up again.

Still hasn't got your profit target. Let's say there's another indecision candle that something to tell me that may be this uptrend not going to continue. So that potentially then could be your clue to get out of the trade either completely or partially or maybe move your stop loss, whatever it is that you do as a trade management tool to ensure that when the trade does turn around, let's say, and it starts dropping, that you don't lose out on that trade and your winning trade ends up turning around to, let's say, a complete loss. That's just what you don't want is what you need to do everything to avoid.

Your trading edge.

And so to me, looking at charts and seeing what actually the mea...