Primary Chart Barometers: Candlestick Patterns
Candlestick patterns are established indicators that benefit a trader to define candlestick charts. This can be invaluable when producing simple systems that will inform you when a trend is evolving so that you can initiate a trade.
The shape of the candlesticks attest the high, low, open and closing price of stocks, currencies or commodities during a specific period. This period can be chosen by the trader.
Day traders generally choose 5 minutes however 15 minutes could be your option for certain cases. Longer periods may be picked 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 bounds of the rectangular body is the open and price went upwards during the respective period. A red (for colored charts) or black indicates the top boundary is the opening price, whilst the price fell during that period.
In candles, vertical lines poking up from the top and down from the bottom are called wicks. The highest price ever obtained during the period is the top of the upper wick section. Contrastingly, the lowest rate is the bottom of the lower wick part.
The advantage 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 manifests a rising price or bearish tendency and a black or red candle illustrates a abating price or bullish tendency.
The relationship of open and close values to high and low values can be examined immediately. Then there is a solid candle minus a wick.
This is referred to as the Marubozu pattern. In this event the values never went lower or higher than their opening and closing stands.
If the candle is black or red, the opening rate was the high and the closing market price was the low. If it is white or green, the opening rate was the low and the closing market price was the high.
A lengthened body means a relatively consistent movement either up or down. A lengthy wick situated on either bottom or top would denote a reversal.
In conclusion, to ensure exact trend reading, candlestick must be read within the context of the preceding candlesticks. You then can continue to make more intricate candlestick patterns that will signify probable future trends. - 23222
The shape of the candlesticks attest the high, low, open and closing price of stocks, currencies or commodities during a specific period. This period can be chosen by the trader.
Day traders generally choose 5 minutes however 15 minutes could be your option for certain cases. Longer periods may be picked 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 bounds of the rectangular body is the open and price went upwards during the respective period. A red (for colored charts) or black indicates the top boundary is the opening price, whilst the price fell during that period.
In candles, vertical lines poking up from the top and down from the bottom are called wicks. The highest price ever obtained during the period is the top of the upper wick section. Contrastingly, the lowest rate is the bottom of the lower wick part.
The advantage 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 manifests a rising price or bearish tendency and a black or red candle illustrates a abating price or bullish tendency.
The relationship of open and close values to high and low values can be examined immediately. Then there is a solid candle minus a wick.
This is referred to as the Marubozu pattern. In this event the values never went lower or higher than their opening and closing stands.
If the candle is black or red, the opening rate was the high and the closing market price was the low. If it is white or green, the opening rate was the low and the closing market price was the high.
A lengthened body means a relatively consistent movement either up or down. A lengthy wick situated on either bottom or top would denote a reversal.
In conclusion, to ensure exact trend reading, candlestick must be read within the context of the preceding candlesticks. You then can continue to make more intricate candlestick patterns that will signify probable future trends. - 23222
posted by X - Men @ 2:30 AM
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