👩🏻Mastering and Understanding Candlesticks Patterns👩🏻

[skrimon]

An overview of Candlesticks
A candle shows how the price has changed over a certain amount of time, like one day or one minute. The main body of the candle shows the price at the start of the time interval and the price when the market closed at the end of the time interval. The length of the shadows shows how much the price has moved up and down in relation to a candlestick over a certain time period.

The body of the candlestick shows the difference between the prices at the beginning and end of the time period.

The market is where buyers and sellers fight it out. If one side is stronger than the other, the following will happen on the financial markets:

If there are more buyers than sellers, or if there are more people interested in buying than in selling, the buyers have no one to buy from. The prices then go up until they are so high that sellers once again think it's a good price to get involved. At the same time, the buyers will stop buying when the price gets too high.

But if there are more sellers than buyers, prices will go down until the market is back in balance and more buyers come in.

"The faster the market moves in one direction, the bigger the difference between these two market players." Prices change more slowly, though, when there is only a small overhang.

When there is an equal amount of interest in buying and selling, there is no reason for the price to change. At the current price, both sides are happy, and the market is in balance.

The goal of analysis is to compare the strengths of both sides to figure out which market players are stronger and, therefore, which way the price is most likely to move.

I hope you enjoy this article. Please tell me what kind of trader YOU are.

Please, support my work with like and comment!

 

[Polakandil]

A Candlestick chart is preferable compared to a line chart and bar chart because more easier to read in views, making comparison candlestick chart with line chart, using candlestick chart we get the price from Open, High, Low and Close, while in the line chart no information like that, while compared bar chart, advantage candlestick chart is we get easy to distinguishes bearish chart and bullish chart from the colour of body candle.

 

[GeekyForex]

Candlestick patterns are a powerful tool in Forex trading, providing valuable insights into market trends and potential price movements. Understanding these patterns can give traders a competitive edge and help them make informed decisions.

One of the core concepts to grasp when looking at candlestick patterns is the relationship between the open, high, low, and close prices. Each candlestick represents a specific time period, such as one hour or one day. The body of the candlestick shows the opening and closing prices, while the wicks or shadows indicate the highest and lowest prices reached during that time frame.

Different types of candlesticks convey different messages about market sentiment. For example, a bullish candle with a long body indicates strong buying pressure and suggests that prices may continue to rise. On the other hand, a bearish candle with a long body signals significant selling activity and hints at further price declines.

Patterns such as doji candles or engulfing patterns also play an important role in analysing market trends. A doji occurs when the opening and closing prices are roughly equal, indicating indecision among traders. An engulfing pattern happens when one candle completely engulfs (or "eats up") another nearby opposite-colored candle – this can signify trend reversals.

It's essential for traders to familiarise themselves with various candlestick patterns through charts and practice analysing them in real-time market conditions. By doing so, they can develop their intuition for interpreting these formations accurately.

 

[Latham]

Spread is such a thing that we mostly consider while choosing a broker. Low spread is always expected because it increases traders' return.

 

[Fin_Trader]

Spread is such a thing that we mostly consider while choosing a broker. Low spread is always expected because it increases traders' return.

I agree with you. This is very important especially when a trader trades intraday. And thanks to candlestick patterns, we can also see the tails of the candles after a false breakout of some support or resistance level and enter the market with a minimum SL and make good money on this thanks to the minimum spreads. My broker fxopen provides just such conditions; it helps me to make a profit faster if the trade is successful.

 

[mrsgodem]

View attachment 5735​

An overview of Candlesticks
A candle shows how the price has changed over a certain amount of time, like one day or one minute. The main body of the candle shows the price at the start of the time interval and the price when the market closed at the end of the time interval. The length of the shadows shows how much the price has moved up and down in relation to a candlestick over a certain time period.

The body of the candlestick shows the difference between the prices at the beginning and end of the time period.

The market is where buyers and sellers fight it out. If one side is stronger than the other, the following will happen on the financial markets:

If there are more buyers than sellers, or if there are more people interested in buying than in selling, the buyers have no one to buy from. The prices then go up until they are so high that sellers once again think it's a good price to get involved. At the same time, the buyers will stop buying when the price gets too high.

But if there are more sellers than buyers, prices will go down until the market is back in balance and more buyers come in.

"The faster the market moves in one direction, the bigger the difference between these two market players." Prices change more slowly, though, when there is only a small overhang.

When there is an equal amount of interest in buying and selling, there is no reason for the price to change. At the current price, both sides are happy, and the market is in balance.

The goal of analysis is to compare the strengths of both sides to figure out which market players are stronger and, therefore, which way the price is most likely to move.

I hope you enjoy this article. Please tell me what kind of trader YOU are.

Please, support my work with like and comment!

Thank you for the information you provided. I loved your article.. Candlestick is one of the indicators used by traders in general. This is because, supposedly, it will be easier to read price movements from candle formation, while candles themselves are formed from price movements. That is, candles represent price movements in the market based on a certain time period, depending on which time frame you see. But it turned out to not be that simple.
Many are stuck in patterns that have been created from literacy in predecessor traders based on their observations. It takes time to observe and understand individually that this candle is not necessarily based on theory. Not infrequently, in the form of certain candles or certain candlestick formations that should give an upward (or downward) signal actually turn around from should. Therefore, the importance of personal experience will be a guide in trading. How do you understand candles—candles that are formed based on notes from predecessors in the world of trading? With this observation and understanding, it is hoped that candlesticks can be used as a weapon of trading strategies to be able to survive in the forex world with good profits.

 

[Polakandil]

Even though they only use candlesticks, if traders understand the behavioral characteristics of trading assets, this can be a reliable tool in gaining profits, which is certain by considering support and resistance zones and fundamental news. And it is important to mitigate risk.