We have had many comments regarding candlestick charting in the last month, so we thought we would revisit the basics. At MarketClub our mission is to help you become a better trader. Our passion is creating superior trading tools to help you achieve your goals -- no matter which way the markets move -- with objective and unbiased recommendations not available from brokers.
The Trader's Toolbox posts are just another free resource from MarketClub.
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"Japanese candlesticks, which have been enjoying the spotlight in recent years, are difficult to explain in one
broad brush. Candlesticks draw on the same open-high-low-close data as do bars. Here the length of the bar, or “candle,” is determined by the high and low, but the area between the open and close is considered the most important.This area, the “body” of the candle, is filled with blue (or white for most charting programs) for closes higher than open, and is filled with red (or black from most charting programs) for down days. The wicks above and below constitute the “shadow” of the candle, or high or low.
No pattern is 100% correct, but these formations are often time incorporated into many mechanical systems and can provide as great information source for the naked eye...."
Revisit the Trader's Toolbox Post: "Candlestick Formations" here.
I like the candle indicators in the eanings section of my trade research. I also look at the charts looking for dips and history.
Candles are fair predictor's! But, in many cases the patterns displayed by candles are not always what are seen on the charts, therefor making analysis difficult, if not impossible to make a decision as to what to do...Any help in that area would be more than appreciated.
The candle's is OK I Only trade with them (no indicators needed)
hi,
I have a doubt about suports and resistences in candles ,,
should I consider the HIGH OR LOW of the day ? or it would be better consider OPEN AND CLOSE of the day? .....
and the most important question .....
when consider that it was broken...
when the market go through this price in a intraday movement, ( should I consider that the high ou low of the day broke the SUPORT/RESISTENCE) ?
or just when it close above or below this price ? (suport and resistence)
thank you very very much!
Regards,
Mauro