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.

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

Post a Comment

Captcha Image

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

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

Business Blogs
Business blogs