Primary Chart Guides: Candlestick Patterns
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 start trading.
The type of the candlesticks refer to the high, low, open and closing price of stocks, currencies or commodities during a specific period. This period can be picked by the trader.
The popular time period is 5 minutes but you may favor in particular 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 rate moved up. Should it be black or red in charts with color, the top extent indicates the opening value and during that period, the price descended down.
The wick is the label given to the vertical lines that customarily stick up from the top and down from the bottom of the candle body. The top of the upper part of wick is the highest spot that the price ever achieved during the period. The bottom of the lower wick is the low.
The boon 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 symbolizes a dropping price or bullish tendency.
Aside from this, the high and low compared to open and close prices are instantly clear. Then you may have an entirely concrete candle without a wick.
This is named as the Marubozu pattern. In this scenario the values never went lower or higher than their opening and closing points.
The high value as opening price and low value as closing price is designated by the red or black candle. On the other hand, green or white candle signifies the low was the opening price while the high was the closing price.
A long body indicates a fairly steady flow either downward or upward. A elongated wick either top or bottom denotes a reversal.
For accurate trend indice a candlestick must be examined in conjunction with the others that preceded it. Then you can fabricate more complex candlestick patterns demonstrating the anticipated trends to come. - 23217
The type of the candlesticks refer to the high, low, open and closing price of stocks, currencies or commodities during a specific period. This period can be picked by the trader.
The popular time period is 5 minutes but you may favor in particular 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 rate moved up. Should it be black or red in charts with color, the top extent indicates the opening value and during that period, the price descended down.
The wick is the label given to the vertical lines that customarily stick up from the top and down from the bottom of the candle body. The top of the upper part of wick is the highest spot that the price ever achieved during the period. The bottom of the lower wick is the low.
The boon 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 symbolizes a dropping price or bullish tendency.
Aside from this, the high and low compared to open and close prices are instantly clear. Then you may have an entirely concrete candle without a wick.
This is named as the Marubozu pattern. In this scenario the values never went lower or higher than their opening and closing points.
The high value as opening price and low value as closing price is designated by the red or black candle. On the other hand, green or white candle signifies the low was the opening price while the high was the closing price.
A long body indicates a fairly steady flow either downward or upward. A elongated wick either top or bottom denotes a reversal.
For accurate trend indice a candlestick must be examined in conjunction with the others that preceded it. Then you can fabricate more complex candlestick patterns demonstrating the anticipated trends to come. - 23217
posted by X - Men @ 2:24 AM
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