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



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

Business Blogs
Business blogs