Interpreting Candlestick Chart Patterns
Candlestick patterns are established indicators that abet a trader to understand candlestick charts. This can be invaluable when establishing simple systems that will brief you when a trend is appearing so that you can initiate a trade.
Candlesticks have a structure that exhibits the open, high, low and closing price of a currency, stock or commodity over a stretch of time. You can basically pick out the duration that you want to show.
The popular time period is 5 minutes but you may favor in specific situations to utilize 15 minutes. Mostly, longer periods are employed for longer term trading.
The difference between open and close points are designated by the candle body. If it?s a white or blue / green on charts with color, the lower body is the open and while you were considering it, the market price marked up. Should it be black or red in charts with color, the top extent indicates the opening rate and during that period, the price tumbled down.
Vertical lines sticking up from top and down from the bottom are called wicks. The highest position the price ever hit is the top of the upper wick portion. The low is the bottom of the lower wick.
This kind of analysis helps the trader to know at a glance if values tumbled or went up during the analysis time frame. Bearish tendencies or rise in price are represented by green or white candles while bullish trends or fall in price would be pointed out by red or black candles.
Aside from this, the high and low relative to open and close prices are rapidly obvious. Then you may have an evidently solid candle without a wick.
The name for this is Marubozu pattern. This means that the opening and closing prices were never moved in either direction by the low and high prices.
The opening was the high price or the closing was the lower price if the candle was red or black. The low price is the open and the close would be the high price when the candle is green or white.
A long body indicates a fairly steady direction either downward or upward. A lengthy wick either top or bottom illustrates a reversal.
In short, to ensure precise trend reading, candlestick must be read within the context of the preceding candlesticks. You then can continue to make more thorough candlestick patterns that will imply probable future trends. - 23305
Candlesticks have a structure that exhibits the open, high, low and closing price of a currency, stock or commodity over a stretch of time. You can basically pick out the duration that you want to show.
The popular time period is 5 minutes but you may favor in specific situations to utilize 15 minutes. Mostly, longer periods are employed for longer term trading.
The difference between open and close points are designated by the candle body. If it?s a white or blue / green on charts with color, the lower body is the open and while you were considering it, the market price marked up. Should it be black or red in charts with color, the top extent indicates the opening rate and during that period, the price tumbled down.
Vertical lines sticking up from top and down from the bottom are called wicks. The highest position the price ever hit is the top of the upper wick portion. The low is the bottom of the lower wick.
This kind of analysis helps the trader to know at a glance if values tumbled or went up during the analysis time frame. Bearish tendencies or rise in price are represented by green or white candles while bullish trends or fall in price would be pointed out by red or black candles.
Aside from this, the high and low relative to open and close prices are rapidly obvious. Then you may have an evidently solid candle without a wick.
The name for this is Marubozu pattern. This means that the opening and closing prices were never moved in either direction by the low and high prices.
The opening was the high price or the closing was the lower price if the candle was red or black. The low price is the open and the close would be the high price when the candle is green or white.
A long body indicates a fairly steady direction either downward or upward. A lengthy wick either top or bottom illustrates a reversal.
In short, to ensure precise trend reading, candlestick must be read within the context of the preceding candlesticks. You then can continue to make more thorough candlestick patterns that will imply probable future trends. - 23305
posted by Mr. Forex at
7:47 AM
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