“Conquer Forex with a Single Candle” – sounds funny, right? Some might even say, “That’s crazy…”
But read this entire article before you judge, and you might reconsider your first impression.
The Power of a Single Candle
First, I have to clarify: I’ve met many traders who trade using only one candlestick (Japanese Candlestick – Candlestick). Surprisingly, some have achieved outstanding success with this strategy.
Here, “one candlestick” does not mean analyzing only a single candle is enough for trading decisions. If taken literally, even I would laugh and say, “What are we even doing?”
What I mean is this:
IF YOU CAN ACCURATELY PREDICT THE NEXT SINGLE CANDLE, YOU ALREADY HAVE THE POTENTIAL TO CONQUER THE FOREX MARKET.
Sounds simple, doesn’t it? Forex, the “high-level financial market” worth trillions, difficult for even renowned financial experts to master—yet predicting one candle accurately can give a winning edge.
Yes, it’s true!
Understanding Candle Sizes Across Timeframes
- M1 candle (1 minute): Average price movement is only 1–2 pips. Even if you predict it correctly, after subtracting the spread, it’s nearly break-even.
- M5 candle (5 minutes): Average movement 2–4 pips. Advantage is still minimal.
- D1 candle (1 day): Average movement 50–70 pips.
- MN candle (1 month): Average movement 400–600 pips. Even if entry and exit aren’t perfect, you can still earn hundreds of pips.
Predicting a monthly candle for consistent profit demonstrates the power of simplifying your strategy.
Simplify Your Trading
As traders, we should simplify. Instead of analyzing a long sequence of dozens of candles, focus on predicting one candle in a higher timeframe:
- To catch a small M15 swing, first look at a D1 candle.
- Identify whether it will be bullish (white) or bearish (black).
- Then refine entries/exits using smaller timeframes.
Steps for Traders
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Learn candlestick structure (many resources available on Google).
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Study common candlestick patterns with high reliability.
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Select your favorite patterns with the highest accuracy.
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Practice predicting the next candle on the chosen timeframe. H1 or higher is recommended for beginners.
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Combine predictions with smaller timeframes to optimize entry/exit points using trend, support/resistance, volume, etc. Also check one adjacent higher timeframe to filter signals.
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Test extensively: analyze losing trades to identify mistakes, analyze winning trades to replicate success.
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When testing shows consistent growth and stable profit, open a real account with a trusted Forex broker to start trading for real.
Real Trade Example
I recently executed a trade on AUD/CAD:
- Entered BUY at 19:48 GMT+7 on October 18, 2017.
- Observation: Previous W1 candle was long and bullish, covering nearly four prior candles. This indicated the current W1 might rise.
- Mid-week, the W1 candle was still black. I entered BUY, expecting price to increase over the last 3 days.
Despite a minor pullback, I held the position following Stop Loss and Take Profit rules (read here).
- SL was set below the distant support, TP at previous high.
- Price rose halfway, then retraced. I moved SL to break-even at entry while keeping TP unchanged.
- Result: Price surged to TP at the end of the week, W1 closed as a beautiful white candle. Profit: 85 pips.
Key Takeaways
By adopting this approach, or combining it with your current system, you can:
- Simplify strategy.
- Gain a positive edge in Forex.
- Focus on predicting one higher timeframe candle instead of complicated sequences.
In short, mastering even one candle can make the Forex journey more manageable and profitable.
If you find this article helpful, share it with others. For additional guidance on trends and trading strategies, see:
Best regards,
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