Fundamental 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 conception of basic systems that will indicate a trend formation so you can begin 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 ecommended time period is 5 minutes but you may desire in some situations to utilize 15 minutes. Usually, longer periods are exercised for longer term trading.
The candle body signifies the diversity of the close and open points. If it's green/blue (for colored charts) or white then the lower bounds of the rectangular body is the open and price went higher during the consideration period. A red (for colored charts) or black indicates the top boundary is the opening price, although the price cascaded during that period.
Vertical lines sticking up from top and down from the bottom are called wicks. The highest position the price ever hit is the top of the upper wick area. The low is the bottom of the lower wick.
The advantage of this method of analysis is that the trader can without delay 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 signifies a crumbling price or bullish tendency.
Aside from this, the high and low compared to open and close prices are rapidly clear. Then you may have an absolutely definite candle without a wick.
This is named as the Marubozu pattern. In this scenario the rates never went lower or higher than their opening and closing stands.
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 means the low was the opening price while the high was the closing price.
A relatively uniform upward or downward trend is defined by a long body. A reversal is marked by a long wick on the top or on the bottom.
For accurate trend identification a candlestick needs to be studied in conjunction with the others that preceded it. Then you can devise more complex candlestick patterns signifying the plausible trends to come. - 23199
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 ecommended time period is 5 minutes but you may desire in some situations to utilize 15 minutes. Usually, longer periods are exercised for longer term trading.
The candle body signifies the diversity of the close and open points. If it's green/blue (for colored charts) or white then the lower bounds of the rectangular body is the open and price went higher during the consideration period. A red (for colored charts) or black indicates the top boundary is the opening price, although the price cascaded during that period.
Vertical lines sticking up from top and down from the bottom are called wicks. The highest position the price ever hit is the top of the upper wick area. The low is the bottom of the lower wick.
The advantage of this method of analysis is that the trader can without delay 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 signifies a crumbling price or bullish tendency.
Aside from this, the high and low compared to open and close prices are rapidly clear. Then you may have an absolutely definite candle without a wick.
This is named as the Marubozu pattern. In this scenario the rates never went lower or higher than their opening and closing stands.
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 means the low was the opening price while the high was the closing price.
A relatively uniform upward or downward trend is defined by a long body. A reversal is marked by a long wick on the top or on the bottom.
For accurate trend identification a candlestick needs to be studied in conjunction with the others that preceded it. Then you can devise more complex candlestick patterns signifying the plausible trends to come. - 23199
posted by X - Men @ 7:48 AM
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