Forex trading is the process of buying and selling currencies in the foreign exchange market. It is a global market where currencies from different countries are exchanged for one another. The forex market is the largest financial market in the world, with a daily turnover of over $6 trillion. Institutional candle forex is a trading technique used by institutional traders to make trading decisions based on the movements of the market.
Institutional traders are large financial institutions such as banks, hedge funds, and investment firms that trade in large volumes. These traders use institutional candle forex as a tool to analyze the market and make trading decisions. Institutional candle forex is a technique used to analyze price movements and patterns in the forex market. It is based on the use of candlestick charts, which are a graphical representation of price movements in the market.
Candlestick charts were developed in Japan in the 18th century and were used by traders to analyze the price movements of rice. The technique was later adopted by traders in the forex market and is now widely used by institutional traders. Candlestick charts are made up of candlesticks that represent the price movements of a currency pair over a specific period of time.
Each candlestick on the chart represents the opening, closing, high, and low prices of a currency pair for a specific period of time. The length of the candlestick represents the range between the opening and closing prices, while the color of the candlestick represents the direction of the price movement. A green candlestick indicates that the price closed higher than it opened, while a red candlestick indicates that the price closed lower than it opened.
Institutional traders use candlestick charts to identify patterns and trends in the market. They use these patterns to make trading decisions and to predict future price movements. There are several patterns that institutional traders look for when using candlestick charts. Some of these patterns include:
1. Doji: A doji is a candlestick with a small body, where the opening and closing prices are almost the same. This pattern indicates indecision in the market and can be a signal of a potential trend reversal.
2. Hammer: A hammer is a candlestick with a small body and a long lower shadow. This pattern indicates a potential bullish reversal, as buyers entered the market and pushed the price up.
3. Shooting star: A shooting star is a candlestick with a small body and a long upper shadow. This pattern indicates a potential bearish reversal, as sellers entered the market and pushed the price down.
Institutional traders also use candlestick charts to identify support and resistance levels in the market. Support levels are areas where the price has previously bounced back up from, while resistance levels are areas where the price has previously bounced back down from. These levels can help institutional traders make trading decisions and set stop-loss orders to limit their losses.
In conclusion, institutional candle forex is a trading technique used by institutional traders to analyze price movements and patterns in the forex market. It is based on the use of candlestick charts, which are a graphical representation of price movements in the market. Institutional traders use candlestick charts to identify patterns and trends in the market, as well as support and resistance levels. By using this technique, institutional traders are able to make informed trading decisions and maximize their profits in the forex market.
