Candlestick chart patterns are exceedingly popular in forex trading because of their dynamic features and versatility.On all charts, users can toggle between line, bar and candlestick chart view.
Candlestick Charts are usually very colorful charts as compared to conventional charts.
Different colors are used to indicate different nature of price movement.
Four prices are of utmost importance in constructing the Candlestick Chart-
High, Low, Open, and Close.
Each candle consists of two parts: the body and the shadows.The body reflects the open and closing price for the certain period.If the candle body is black the close price is below the open, and white if the close is higher than the open for the period.
On the other hand, candlestick shadows reflect the intra-period high and low prices of forex in a market.In candlestick charting the periods used are 5 minutes, 15 minutes, 1 hour, daily and weekly.A long shadow reflects that the trading extended well beyond the opening or closing price, while a short shadow, shows that trading was confined closely to the open or closing price.
Each element in a candlestick pattern in forex predicts certain trends.Long white candlesticks predict strong buying pressure.The longer the white candlestick, the further the close is above the open.This indicates that prices advanced significantly from open to close and forex buyers were aggressive.
There are various patterns of candlesticks charts, which are employed in forex.
Doji, for example is a candlesticks pattern that is generated when the body of the candle is minimal as market's open and close are virtually equal.
There are others like Hammer, Inverted hammer, Gravestone, Shooting star, Three white
soldiers, Three black crows, Marubozu Black and White and many more. These candlesticks do not have upper or lower shadows and the high and low are represented by the open or close.
Candlestick charts are much more visually appealing than any other two dimensional bar charts used in forex prediction.They convey market price information in a quicker and easier manner.
Candlestick Chart became famous and acceptable to the forex traders by its amazing success story initially in the commodity market.
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Sunday, September 20, 2009
Candlestick Charts Tips
Few tips for candlestick charts and their interpretation in the
forex market can be:
1. A Black Candlestick -- when the close is lower than the open.
2. A White Candlestick -- when the close is higher than the open.
3. A Shaven Head -- a candlestick with no upper shadow.
4. A Shaven Bottom -- a candlestick with no lower shadow.
5. A Spinning Tops -- an equilibrium between the bulls and the bears (either white or black).
6. A Doji Line - a very close Open and Close?doj.
Some of the benefits of candlesticks in forex are:
1. Ease of reading - as the charts are composed of four price readings: open, high, low, close
2. Not only shows the direction of a trend, also shows the strength of a move in a particular time frame.
3. Can be used in conjunction with other technical indicators.
4. Provides the earlier reversal signals.
forex market can be:
1. A Black Candlestick -- when the close is lower than the open.
2. A White Candlestick -- when the close is higher than the open.
3. A Shaven Head -- a candlestick with no upper shadow.
4. A Shaven Bottom -- a candlestick with no lower shadow.
5. A Spinning Tops -- an equilibrium between the bulls and the bears (either white or black).
6. A Doji Line - a very close Open and Close?doj.
Some of the benefits of candlesticks in forex are:
1. Ease of reading - as the charts are composed of four price readings: open, high, low, close
2. Not only shows the direction of a trend, also shows the strength of a move in a particular time frame.
3. Can be used in conjunction with other technical indicators.
4. Provides the earlier reversal signals.
Thursday, September 10, 2009
Trade in Forex?
How do I trade Forex?
You select the pair of currencies with which you wish to make a Forex deal. You determine the volume (the amount of the deal). You deposit the "margin" (collateral needed to facilitate the deal. Usually - only a very small portion of the whole deal, say: 1% or 1:100).Before you finally activate the deal, you can still "freeze" it for a few seconds.
That enables you to either change the terms, or accept it as is, or altogether regret the whole idea. The "freeze" feature is a unique service by us.When your Forex deal is running (you hold an "open position"), you can monitor its status and check scenarios online, whenever you wish. You may change some terms in the deal, or close it (and cash the profit, if any, or minimize the loss, if any).
Moreover, We lets you determine a "take-profit" rate, with which the deal will close automatically for you, when and if such rate occurs in the market. Meaning: you do not have to stay near your computer when you hold open positions.
Want to know more? Want to get on-line training?
Check this out and learn how to earn money in Forex Trading.
You select the pair of currencies with which you wish to make a Forex deal. You determine the volume (the amount of the deal). You deposit the "margin" (collateral needed to facilitate the deal. Usually - only a very small portion of the whole deal, say: 1% or 1:100).Before you finally activate the deal, you can still "freeze" it for a few seconds.
That enables you to either change the terms, or accept it as is, or altogether regret the whole idea. The "freeze" feature is a unique service by us.When your Forex deal is running (you hold an "open position"), you can monitor its status and check scenarios online, whenever you wish. You may change some terms in the deal, or close it (and cash the profit, if any, or minimize the loss, if any).
Moreover, We lets you determine a "take-profit" rate, with which the deal will close automatically for you, when and if such rate occurs in the market. Meaning: you do not have to stay near your computer when you hold open positions.
Want to know more? Want to get on-line training?
Check this out and learn how to earn money in Forex Trading.
Secrets Of Successful Traders. -Make $300 Per Day - New Sales Page Convert 1:23 - Discover How To Turn $1000 Into $1 Million In 5 Years Trading Stocks Or Get Your Money Back & I Will Pay *Extra $50 Cash* For Wasting Your Time!..read more!
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