Dating guide candlesticks
Candlestick patterns are a good tool, but only for confirmation.
Of course every trader should know how to read the candles. If you know how to read the candles properly, you can use them for confirmation in your trades – but first you must know the basics Japanese Candlesticks are a type of chart which shows the high, low, open and close of an assets price, as well as quickly showing whether the asset finished higher or lower over a specific period, by creating an easy to read, simple, interpretation of the market.
But it’s also a fact that nobody made money using candlestick patterns.
Many new traders are excited because they have some good results in the beginning by candlestick patterns without spending much time reading about trading, but in the long run they fail and they come back to learn more.
So let us explain what Japanese Candlesticks are, how the “candles” are created and basic candlestick interpretation.
For example, if a 5 minute chart was used each candle shows the open, close, high and low price information for a 5 minute period.Occasionally you will also see bars that are nearly all upper and/or lower shadow, with very little real body.These are called dojis and have special meaning, a market in balance, and often give strong signals.If the close is higher than the open, the candle will be green or white; if the close is lower than open the bar will be red or black but other colors can often be found on different charts.The open or close are not necessarily the high or low price points of the period though.