Candlestick charts are one of those charts which are categorized as oldest types. Candlestick charts are used for price predictions in history. In 1700s, these candle stick charts were used for rice price prediction.
The forex candlestick charts are similar to the bar chart. While learning of forex candlestick charts is not as easy as bar charts, they give you more concise and detailed information about what is actually going on. It does not only provide highs and lows for an entry, but the opening and closing prices as well.
Candlesticks are usually consisting of the body (white/green or black/red), an upper and a lower shadow. These shadows indicate the highest and lowest currency traded prices. Colors of the body show the bullish or downfall trends.
If the body is green, it means closing price is higher than opening price. On the other side, if the body is red, it means closing price is lower than opening price.
If you detect a red candlestick, it can be considered to be taken as a warning about the way the currency price is going on. The very peak of a candles stick is the highest price for that specific candle while the bottom of the stick is the lowest price for that particular candle.
Biggest advantage that learning of Forex candlestick charts may provide is when you only take a quick view; you will notice a lot of information about the movements in an online Forex currency. You become aware of the difference between the open and close prices of the online Forex.
Once you have learned forex candle stick charts, you would be able to save a lot of your time that you used to consume in reading news papers for the details of trends of prices.
No comments:
Post a Comment