How To Read Candlestick Charts

Candlestick charts are very popular Forex traders because they provide more Information then simple line can They provide data during a certain time period, each candle shows its own Opening closing, maximum and minimum prices And you can usually determine the time scale by selecting on the platforms Toolbar seconds, minutes, hours anything up to a month.

The candles themselves have weeks both above and below The two-sided candle, the top week is called the shadow And the bottom week is called the tail, the middle part is the body Candles are green if the assets price rose during the time period described And red if it dropped, the shadow reaches up to the highest price during the period and the tail reaches down to the lowest, toll a shadow The stronger the support, the longer the tail,

The stronger the resistance But candlestick charts don’t only provide information They can sometimes be used to identify trends and even predict them Just for example, a candle stick with no tail but a tall shadow Suggests that the market is shifting from bearish to bullish One with no shadow, but the long tail might be hinting at a shift From bullish to bearish.

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