Chart presentation presented: Candlestick Chart
Digital popularity has certainly gained popularity in its simplest form, speculating only on the fall or rise of a course.
Candlestick charts that reflect the course of the course in the form of small rectangles (candles) with wicks (above) and rounds (below) are very popular with the graphical presentation of price trends. The introduction of these charts took precedence over a Japanese Reishändler in the 18th century, which later became the richest citizen of Japan and then Finance Minister. Through Steve Nison, in 1990 the our great post to read current form of candlestick charts was introduced, whose value is so highly valued that many brokers do not want to miss them any more.
For a Candlestick chart, the price is plotted against the observed period. In the visite site they chart itself there are small rectangles, which describe the course of the course in the period. The lower end represents the opening price; the upper end represents the closing price. Colored markers promote the clarity of the chart by coloring a rectangle of a course of the course green (white) and of a falling course of the course red (black). If, on the other hand, no change of course took place, the rectangle consists of a narrow horizontal line.
Furthermore, so-called wicks and braids, also referred to as shadows, are placed on the rectangles, which classify the course relative to the extreme work find out values. At the lower end, the slit indicates the distance from the low point, the wick at the upper end corresponds to the distance to the local maximum of the course.
If you combine many of these "candles" for individual periods, the course will be displayed over time. This representation is, however, a discrete function, and theoretically infinite periods of time (points of time) would be considered, a line diagram would be obtained as a result of the continuity of the course function obtained. The Candlestick charts are very similar to the beamcharts, with the find now wicks and lunts giving even more information in them.
The interpretation of a candlestick chart
Through candlestick charts the same points as in other charts are tried in the chart analysis. This allows you to look for trends or trend channels, support and resistance values as well as a range of the course. In conjunction with other indicators, a strategy for trading with binary options can be found. Furthermore, the representation form in candles can be used continue go to find patterns of the course. Here the terms bull and bear are introduced, with a bull being a strong buyer and the bear a cautious seller. These terms help you find patterns in the candlestick chart.
A closer look at individual core elements shows the following:
1. The length of the candles
The difference between opening and closing price is determined by the length of the candle. A long discover this info here good candle knows a big buying pressure (rising price) or an equally large selling pressure (sinking course). There is therefore a clear market mood in the case, with a thin line as a candle more likely to indicate a lack of indecision among investors.
The shadows, wicks and lunches show the price fluctuations in the observed period. Long shadows point to a very volatile course, short shadows on a unity of the market at a stable course.
3. The color of the candles
By the color of the candles, upward and downward movements can quickly be made. It also shows whether the market was dominated by bulls or bears.
Very specific shapes of individual candles allow for further knowledge. Some forms can be attributed to if useful link certain meanings which refer to the mood of the market.
5. Relationship between candles.
Not only the analysis of individual candles is worthwhile, but also the consideration of the overall picture. Analysts have meanwhile evaluated the most diverse patterns of neighboring candles, which have meanings in the market. These conclusions are based on empirical experience.
A long red or black candle is a sales signal for many experts because many investors have sold their papers and the closing price is below the initial value. Complex patterns, which require an interpretation of the overall image are also available. Of this, 40 are known, which market signals indicate. The you can look here some mood in the market, whether it is from