Free Employment & Career Articles

Professional Authors - Professional Articles



How To Understand And Appreciate The Importance and Value of Candlesticks in Forex Trading Strategies!


If you are new to Forex trading there are probably a lot of things that seem strange and new to you and candlesticks are probably one of those strange things. What these are, are drawings that will identify the high, the low, the opening and the closing prices of the different currencies over a certain amount of time. If they are to be used effectively the trader needs to understand their meaning of the candlestick shape and the significance of the different patterns that are made by the different sequences of the candlesticks.

The basic shape is a rectangular body, much like a candle with two wicks on the top and one wick on the bottom. The top and bottom represent a currency pair's opening and closing amounts. The very tip of the wick of the candle is the highest price for the specific period of time and the tip of the bottom wick is the lowest period. If the pair happens to close high the candlestick body is going to be green and if it closed low, the candlestick is going to be red.

If you want to try and figure out the candle body, shape and color then you need to start at the highest point of the candle's body. If there is a tall body, this means that the price has moved a lot during the trading period. If the tall body is green then it means there is an uptrend in the market and if red then there is a downtrend in the market. If there is a short candle then this means there has been an unresolved kind of tug of war going on between buyers and sellers.

Looking at the length of the wicks is important too. If you look at the wick at the closing of the period you will want to see if the wick is short or gone. If the candle is green and there is no wick or it's short this means that the pair closed near the high point if the candle is red it means the pair closed at the lowest point of the period. If wicks happen to be long means that the prices ended up away from all of the extremes of that period and does not indicate any kind of trend.

It's sometimes a good thing to try and have a series of candlesticks to look at. This will give you a visual idea of how well the pairs are doing over a period of time. It helps traders see what happened to their pairs during the entire trading period and this can help them decide on what to do the next time that they do their trading. It gives them a support and resistance level as a guideline. For instance some closing prices will bounce between two different price lines and the lower line would be the support and then the upper line would be the resistance the pairs had to the higher prices during the period.

Note: Before even getting into Forex trading make sure that you do plenty of research, get some online training as well as using demo sites to get an idea on how the trading actually works.



Comments
Jacquiline Pavan commented on 03-Aug-2016 10:08 AM
Great read.


Post a Comment




Captcha Image






BLOG TAG CLOUD
scams emotions police be prepared recruitment agency knowledge claims pay attention job seekers legitimate company business bureau schedule honesty job finding employment resume mortgage interviewers specific directions policy quit work timetable website fellow employee foot in the door professional job interview sleep jobs new boss job performance correct information difficult people right person feel valued misconduct giving attention first day job interview tips smiling personal freedom moving state questionnaire duties list boss know work place career tips work hours negotiate dissatisfied employee job help Al-Anon objectivity friction grammar errors employees behavior shock social security big bucks answering questions annoying co-worker scammers professional references environment empathy pleasant working environment annoying employee work scheduled changed rent human resources lawyer life changing minimum wage become important co-worker recommendation hate job company policies help subordinate children career center job search local papers.job getting fired tax money benefits work load co-worker sabotage work record previous employment employment office contributions GED programs interview preparation qualifications handbook eat right personal information vacations employment tip talk to boss interview advice login research follow instructions volunteer work job references currency trading respect arrogance good documentation employers maps churches worries workplace intelligence violation job management gossip vacation time work abilities interview tips important fair pay company policy AA income lawsuit interests former employers opportunity stress good references career help own work paid to work jobsearch alcoholic taxation issues supervisor shops guidelines strengths prison library friends work schedule happy worker forex trading work production flexibility employment ad employment advice job satisfaction cragslist previous employer business management angry boss quality time unemployment benefits problems be positive professional conduct sandwiches parole officer get the job done good employment character reference employment references can of worms employee hours prison training appeal letter black marke religious discrimination new skills orientation money professional deadline employment history addiction counseling look for a job getting credit job reference pink slip enjoying work job advice investigation candlestick patterns agism productivity schools confident finding a job boss family life personal problems personality drugs confidence job title lazy boss cover letter interview hackers family issues resigning employment personal job policies refreshed equal taking credit resentment passion employer social security number management tips bad mouth love job lunch state department work recommendation quitting job hobbies great job reference politeness professional levels diplomacy distrust work schedule change candidates special instructions job seeker proper manner housing your future dress nice showing respect self employed taxes personal goals company website paperwork addiction car payments job application job market upset boss unemployment lines comfortable job description pride negotiation improve conditions potential employer self employed person stressful interview tips disabilities volunteering staff management nice shirt job interview healthy dinner foreign exchange market annoying fellow employee job position dealing with boss work force lunch break employment tips qualification mp3 player decision making employee online job application work area valued employee screened out prospective employer hr office gossip work environment find work new job fix problems job skills background check feel good job candidates unemployed dispute resolution staff management tips human resources tips friendly job search.personal credibility former employer salary fear different people weaknesses samples of work temptations relaxed smile issues skills coping photo manipulation negotiable fellow employees current boss credit card information information list personnel department angry feelings emergency honest opinion job hunting job discrimination self-control hat job self employed career change attorney employee benefits vending machine update resume career path time off interview questions work programs parolees feeling better fired complaint being unreasonable federal jobs values quit job procedures secretive unemployment claim new employee secured server union annoys paying attention experience career advice anti-discrimination policies sexism alcoholism unemployment family co-workers religious holidays drivers licence eye contact relocation personal issues jobseeker help spelling errors finances sadness accommodation nice pants forex trading strategies soup fight discrimination career management embezzlement earned vacation time losing your job ID personal time



Copyright 2016 - Free Info Site Enterprises
Privacy Policy  |  Copyright Policy  |  Website Use Policy  |  Non Endorsement Policy  |  Contact Us  

Business Blogs
Business blogs