Posts Tagged ‘candlestick’

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How to Read Forex Candlestick Charts

Candlesticks are graphical representation of price fluctuations. For currency pairs, a candlestick can represent any period of time. By default, a trader's software can usually provide charts representing timeframes up to 1-minute, up to and including one month per candlestick. There are no calculations required to interpret candlestick charts. They are a simple visual aid representing price movements in a given time period. Each candlestick reveals four vital […]

Bullish Candlestick Chart Pattern — Bullish Hammer

This pattern occurs at the bottom of a downtrend. This is a single candlestick pattern that has a long lower shadow with a very small body or very near the top of its daily trading range. Recognition criteria: The market is characterized by a prevailing downtrend. A small body at the upper end of the trading range is observed. The color of the body is not so important. The shadow of this candlestick is at least twice as the length of the body. […]

What Is Candlestick Chart Analysis?

What is a candlestick chart? Candlestick show the price movement in a certain period, such as 1-min, 5-min, 15-min, etc. It's using the time frames with open, low, high, and close prices. A candlestick is composed of a box which is called the body whose length is the difference between the open and the close price. The thin vertical lines are called shadows above and below the body representing the high and low prices reached […]

Forex Candlestick Patterns Explained With Examples

Candlestick charting is widely used by most traders around the world due their ease of use and better representation of what is taking place in the market. Candlesticks are formed using the open, high, low, and close prices of a financial instrument for the chosen time period whether it is 30-min, 4-hour, or 1-day. Candlestick has different components. The wide section of the candlestick is referred to as the real body and it is what represents […]

Understanding Japanese Candlesticks Forex Charts

Price evolution in a market could be described and plotted on a chart in different ways. The line chart and the bar chart were used for many years, the preferred methods used to visualize price evolution. The growing complexity of the interactions in many markets have driven the western world into adopting a more sophisticated charting method. It has its origin in Japan, where it was developed and used for many hears before. Japanese candlesticks are […]

Forex Inside Bar Candle Indicator

Inside bars provide a high probability setup with a good risk to reward ratio. An inside bar is completely contained within the range of the preceding bar. The inside bar has a higher low and lower high than the preceding bigger bar. The preceding bar is also known as the mother bar. The less common occurrence of multiple inside bars within the range of the same mother bar usually means the price is coiling up […]

Forex Engulfing Candle Pattern Indicator

Engulfing candles are easy to spot on a candlestick chart. They provide a good way to enter a trend or to signal a potential trend reversal. There are two types of engulfing candles, bullish engulfing and bearish engulfing. Bullish engulfing occurs when the body of the bullish candle is bigger than the preceding bearish candle. As implied by its name, the pattern suggests that the bulls have taken control of the price movement. A bearish engulfing occurs […]

What Are Candlestick Charts? — Explained

You probably think that financial analysis is complicated, but it actually comes down to two simple things, reading charts, and reading news. There are many types of charts, the Japanese candlestick charts are the most popular ones. Such a chart consists of red and green candlesticks. Each candle can give you detailed information about the price movement within a specific time interval. In fact Japanese candlesticks […]

Understanding Candlestick Charts (Tutorial For Beginners) — Trading Basics

Candlesticks are the most commonly used method of displaying the price movement of a market on a chart. Each candlestick chart will have the time scale on the horizontal axis and the price scale on the vertical axis. Each candlestick chart you see will display candles in a particular time interval. These intervals can be anything such as 5-minutes, 1-hour, 4-hour, 1-day, etc. So, for example, here we are looking at a 5-minute chart, so […]

How to Read Japanese Candlestick Charts?

You probably think that financial analysis is complicated, but it actually comes down to two simple things, reading charts and reading news. There are many types of charts, but Japanese candlestick or simply candlestick are the most popular ones. Such a chart consists of red and green candlesticks, or candles lined one after another. Each candle gives you detailed information about the price movement within […]