Reading Candlestick Chart Patterns
2:38 AM
Candlestick patterns are basic indicators that benefit a trader to define candlestick charts. This can be invaluable when producing simple systems that will brief you when a trend is emerging so that you can start a trade.
Candlesticks have a formation that displays the open, high, low and closing price of a currency, stock or commodity over a time frame. You can basically mark the stretch of time that you want to show.
The popular time period is 5 minutes but you may desire in specific situations to utilize 15 minutes. Mostly, longer periods are employed for longer term trading.
The body of the candle characterizes 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 elongated body and the price marked up 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 went down.
In candles, vertical lines pointing up from the top and down from the bottom are called wicks. The highest value ever accomplished during the period is the top of the upper wick section. On the other hand, the lowest price is the bottom of the lower wick component.
The trader can decide directly the price behavior from this analytical method. Bear markets are illustrated by green or white candles albeit bull markets are signified by red or black candles.
Aside from this, the high and low relative to open and close prices are rapidly evident. Then you may have an absolutely concrete candle without a wick.
It's called a Marubozu pattern. Prices never went greater or lower than the opening and closing prices in this situation.
The opening was the high price and the closing was the reduced price if the candle was red or black. The low price would be the open and the close is the high price when the candle is green or white.
A long body indicates a fairly steady direction either downward or upward. A elongated wick either top or bottom signifies a reversal.
For accurate trend index a candlestick needs to be examined in conjunction with the others that preceded it. Then you can fabricate more complex candlestick patterns demonstrating the anticipated trends to come.
Candlesticks have a formation that displays the open, high, low and closing price of a currency, stock or commodity over a time frame. You can basically mark the stretch of time that you want to show.
The popular time period is 5 minutes but you may desire in specific situations to utilize 15 minutes. Mostly, longer periods are employed for longer term trading.
The body of the candle characterizes 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 elongated body and the price marked up 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 went down.
In candles, vertical lines pointing up from the top and down from the bottom are called wicks. The highest value ever accomplished during the period is the top of the upper wick section. On the other hand, the lowest price is the bottom of the lower wick component.
The trader can decide directly the price behavior from this analytical method. Bear markets are illustrated by green or white candles albeit bull markets are signified by red or black candles.
Aside from this, the high and low relative to open and close prices are rapidly evident. Then you may have an absolutely concrete candle without a wick.
It's called a Marubozu pattern. Prices never went greater or lower than the opening and closing prices in this situation.
The opening was the high price and the closing was the reduced price if the candle was red or black. The low price would be the open and the close is the high price when the candle is green or white.
A long body indicates a fairly steady direction either downward or upward. A elongated wick either top or bottom signifies a reversal.
For accurate trend index a candlestick needs to be examined in conjunction with the others that preceded it. Then you can fabricate more complex candlestick patterns demonstrating the anticipated trends to come.
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