One of the vital indicators that aid traders interpret candlestick charts are candlestick patterns. Candlestick patterns are instrumental for making effortless systems that will advise you regarding the evolution of a trend in order for you to commence trading.
The open, high, low, close rate of the stock, commodity or currency over a period of time is displayed in the candlestick form. The period covered is generally user selectable.
5 minutes is routine for day traders but you may pick 15 minutes in some situations. For longer duration trading you can opt for longer periods.
The body of the candle points the difference between the open and close prices. If it is white (or green/blue on a colored chart) the open is the lower boundary of the elliptical body and the price increased during the period you are reckoning. If it is black (or red on a colored chart then the opening price is the top boundary and the price plummeted.
In candles, vertical lines pointing up from the top and down from the bottom are called wicks. The highest rate ever accomplished during the period is the top of the upper wick section. On the other hand, the lowest rate is the bottom of the lower wick area.
The boon of this method of analysis is that the trader can straight off see whether prices rose or fell over the period. A white or green candle exposes a rising price or bearish tendency and a black or red candle illustrates a crumbling price or bullish tendency.
You can also examine at a glance how the highs and lows compare to the opening and closing market prices. You might have a candle that is conclusively solid, without the wick.
It's called a Marubozu pattern. Prices never went higher or lower than the opening and closing prices in this situation.
The opening was the high price & the closing was the lower price if the candle was red or black. The low price is the open and the close was the high price when the candle is green or white.
A long body indicates a fairly steady flow either downward or upward. A lengthy wick either top or bottom denotes a reversal.
A candlestick has to be elucidated along with the previous ones in order to ensure precise trending. From there relatively complicated trends can be devised to delineate the trends in the future. - 29969
The open, high, low, close rate of the stock, commodity or currency over a period of time is displayed in the candlestick form. The period covered is generally user selectable.
5 minutes is routine for day traders but you may pick 15 minutes in some situations. For longer duration trading you can opt for longer periods.
The body of the candle points the difference between the open and close prices. If it is white (or green/blue on a colored chart) the open is the lower boundary of the elliptical body and the price increased during the period you are reckoning. If it is black (or red on a colored chart then the opening price is the top boundary and the price plummeted.
In candles, vertical lines pointing up from the top and down from the bottom are called wicks. The highest rate ever accomplished during the period is the top of the upper wick section. On the other hand, the lowest rate is the bottom of the lower wick area.
The boon of this method of analysis is that the trader can straight off see whether prices rose or fell over the period. A white or green candle exposes a rising price or bearish tendency and a black or red candle illustrates a crumbling price or bullish tendency.
You can also examine at a glance how the highs and lows compare to the opening and closing market prices. You might have a candle that is conclusively solid, without the wick.
It's called a Marubozu pattern. Prices never went higher or lower than the opening and closing prices in this situation.
The opening was the high price & the closing was the lower price if the candle was red or black. The low price is the open and the close was the high price when the candle is green or white.
A long body indicates a fairly steady flow either downward or upward. A lengthy wick either top or bottom denotes a reversal.
A candlestick has to be elucidated along with the previous ones in order to ensure precise trending. From there relatively complicated trends can be devised to delineate the trends in the future. - 29969
