One of the important indicators that aid traders interpret candlestick charts are candlestick patterns. Candlestick patterns are instrumental for making effortless systems that will advise you regarding the compilation of a trend in order for you to start trading.
The shape of the candlesticks refer to the high, low, open and closing price of stocks, currencies or commodities during a particular period. This period can be selected by the trader.
The customary time period is 5 minutes but you may favor in particular situations to take 15 minutes. Typically, longer periods are employed for longer term trading.
The body of the candle characterizes the difference between the open and close values. If it is white (or green/blue on a colored chart) the open is the lower boundary of the elongated body and the price advanced during the period you are examining. If it is black (or red on a colored chart then the opening price is the top boundary and the price went down.
In candles, vertical lines poking up from the top and down from the bottom are known as wicks. The highest price ever accomplished during the period is the top of the upper wick section. Contrastingly, the lowest value is the bottom of the lower wick part.
The trader can establish immediately the price behavior from this analytical method. Bear markets are signified by green or white candles whilst bull markets are signified by red or black candles.
The connection of open and close values to high and low values can be discerned quickly. Then there is a solid candle devoid of a wick.
This is referred to as the Marubozu pattern. In this event the rates never went lower or higher than their opening and closing points.
The high value as opening price and low value as closing price is marked by the red or black candle. Adversely, green or white candle signifies the low was the opening price while the high was the closing price.
A long body means a relatively steady movement either up or down. A lengthy wick positioned on either bottom or top would imply a reversal.
For accurate trend indice a candlestick should be studied in conjunction with the others that preceded it. Then you can devise more complex candlestick patterns indicating the probable trends to come. - 23211
The shape of the candlesticks refer to the high, low, open and closing price of stocks, currencies or commodities during a particular period. This period can be selected by the trader.
The customary time period is 5 minutes but you may favor in particular situations to take 15 minutes. Typically, longer periods are employed for longer term trading.
The body of the candle characterizes the difference between the open and close values. If it is white (or green/blue on a colored chart) the open is the lower boundary of the elongated body and the price advanced during the period you are examining. If it is black (or red on a colored chart then the opening price is the top boundary and the price went down.
In candles, vertical lines poking up from the top and down from the bottom are known as wicks. The highest price ever accomplished during the period is the top of the upper wick section. Contrastingly, the lowest value is the bottom of the lower wick part.
The trader can establish immediately the price behavior from this analytical method. Bear markets are signified by green or white candles whilst bull markets are signified by red or black candles.
The connection of open and close values to high and low values can be discerned quickly. Then there is a solid candle devoid of a wick.
This is referred to as the Marubozu pattern. In this event the rates never went lower or higher than their opening and closing points.
The high value as opening price and low value as closing price is marked by the red or black candle. Adversely, green or white candle signifies the low was the opening price while the high was the closing price.
A long body means a relatively steady movement either up or down. A lengthy wick positioned on either bottom or top would imply a reversal.
For accurate trend indice a candlestick should be studied in conjunction with the others that preceded it. Then you can devise more complex candlestick patterns indicating the probable trends to come. - 23211
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