One of the traders accessories in developing methods of candlestick charts are the candlestick patterns. They are quite indispensable when one is engaged in the creation of basic systems that will indicate a trend formation so you can commence trading.
The open, high, low, close market price of the stock, commodity or currency over a period of time is displayed in the candlestick form. The period covered is generally user selectable.
Day traders typically choose 5 minutes though 15 minutes could be your choice for some cases. Longer periods may be selected for longer term trades.
The candle body defines the diversity of the close and open points. If it's green/blue (for colored charts) or white then the lower boundaries of the rectangular body is the open and price went upwards during the particular period. A red (for colored charts) or black indicates the upper boundary is the opening price, although the price cascaded during that period.
In candles, vertical lines pointing up from the top and down from the bottom are known as wicks. The highest rate ever accomplished during the period is the top of the upper wick section. Contrarily, the lowest value is the bottom of the lower wick component.
The blessing of this kind of analysis is that the trader can right away see whether prices rose or fell over the period. A white or green candle manifests a rising price or bearish tendency and a black or red candle illustrates a dropping price or bullish tendency.
You can also behold at a glance how the highs and lows ascribe to the opening and closing market prices. You could have a candle that is absolutely solid, minus the wick.
It's called a Marubozu pattern. Prices never went higher or lesser than the opening and closing prices in this scenario.
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 read along with the previous ones in order to ensure accurate trending. From there relatively intricate trends can be built to demonstrate the trends in the future. - 23309
The open, high, low, close market price of the stock, commodity or currency over a period of time is displayed in the candlestick form. The period covered is generally user selectable.
Day traders typically choose 5 minutes though 15 minutes could be your choice for some cases. Longer periods may be selected for longer term trades.
The candle body defines the diversity of the close and open points. If it's green/blue (for colored charts) or white then the lower boundaries of the rectangular body is the open and price went upwards during the particular period. A red (for colored charts) or black indicates the upper boundary is the opening price, although the price cascaded during that period.
In candles, vertical lines pointing up from the top and down from the bottom are known as wicks. The highest rate ever accomplished during the period is the top of the upper wick section. Contrarily, the lowest value is the bottom of the lower wick component.
The blessing of this kind of analysis is that the trader can right away see whether prices rose or fell over the period. A white or green candle manifests a rising price or bearish tendency and a black or red candle illustrates a dropping price or bullish tendency.
You can also behold at a glance how the highs and lows ascribe to the opening and closing market prices. You could have a candle that is absolutely solid, minus the wick.
It's called a Marubozu pattern. Prices never went higher or lesser than the opening and closing prices in this scenario.
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 read along with the previous ones in order to ensure accurate trending. From there relatively intricate trends can be built to demonstrate the trends in the future. - 23309
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