Lot many times we get similar question that “How to trade Indian Currency/ forex Trading Market?” Is it really similar to the International currency trading market? Are all those trading methodologies defined there for International currency trading will apply to Indian currency trading market?
Ans: Yes, you can apply all the trading strategies you have defined for International currency trading to Indian Currency trading market. One of the major difference between Indian currency trading market and International currency market is Indian market is open from 9.00am to 5.00pm whereas the foreign currency trading market is open for 24 hours. So Indian currency trading market opens up with gap & we need to learn how to trade Gaps created at the time of opening market session (9.00am) every day.
Elsewise everything is same, let’s starts with candle stick pattern & See does it really works on Indian currency trading market? We will start with Bullish Engulfing Pattern –
How to define Bullish Engulfing Pattern??
Bullish Engulfing Pattern is a pattern characterized by a large white real body engulfing a preceding small black real body, which appears during a downtrend. The white body does not necessarily engulf the shadows of the black body but totally engulfs the body itself. The Bullish Engulfing Pattern is an important bottom reversal signal.
1. Market is characterized by downtrend.
2. Then we see a small black body.
3. Next day we see a white body that completely engulfs the black real body of the preceding day.
So once you found this pattern next we are expecting strong bullish trend. This pattern we will use as trend reversal.
Lets Learn this with respect to the real time market scenarios.
EURUSD: The following image shows how to trade on a bullish engulfing pattern. Most of the time we don’t know how to define the stop loss and set the target definitely. See below the SL line is meant for Stop Loss & here you will actually set the stop loss. depending on the resistance & support levels you can put reverse order here. Let me explain what is meant by reverse order – In all the scenarios or trading setups our predication will not necessarily come true in that situation we should be prepared with what if market went against us. So in the below situation we can put a reversal order if Stop loss hits our Sell will trigger, expecting market is strong bearish and the bearish trend will continue for some more time.
NZDUSD: Similar to EURUSD, below explained how the NZDUSD bullish engulfing pattern. It is easy to predict the bullish engulfing pattern & how we can trade it. Similar to Above bullish engulfing pattern you can see for a risk of 1R profit is more than 4R.
I hope by the time you would have got Idea about how to trade the bullish engulfing pattern, Now only thing remains is that does the similar pattern exists on Indian currency trading market and how to trade them. Above explained Images are from Meta trader4 software, till the time that is not available for Indain currency trader. Only trading plateform available to Indian Currency traders are either Odin Diet or NSE now. Following Images are from Odin Diet software which are used by most of Indian currency broker. Lets see how this pattern looks like on Indian currency trading charts?
EURINR: Daily chart, bullish engulfing pattern
From above Figure it is very clear that the similar pattern exist in Indian currency trading charts & it works very well, probability of working this candlestick pattern is more than 90%. Lets take one more example below
GBPINR: Daily chart, bullish engulfing pattern
- So I hope now you have got clear idea of how to predict the pattern for chart and trade it.
- This is how the forex market Making Money is very very Easy. How?
- Select the strategy & stick to it 🙂
How much loss you can bear per trade?
Which trading pattern you will trade (Bullish Engulfing)?
Stick to the plan & discipline yourself.
Once you get expertise in one pattern Go for the next one
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