Understanding different types of candles

Understanding different types of candles
A chandelier has many types of shapes and sizes; Some are huge and some are small, some have a good top and some have an impressive background, some have a long leg and some have a great hand. However, trade with graphic plan is fun and enjoyable

Candlesticks are tracked in all timeframes and each time frame, the value and importance of a chandelier is different, for example, a single chandelier in a daily chart provides information of significant market price action and is much more important that a Candlestick single day 5-minute Intra.

Candlesticks are tracked in various sizes currency charts. I'm sure; You might want to know the difference, and what market information makes this different sizes of candlesticks reflects?

Candlesticks long, medium and short films

The bigger the candlesticks are real body; More is the difference between the opening price and the closing price of a currency pair. A long body reflects the power of supply and demand. The longer the body is real, that the powerful are buyers or sellers; As a result, bearish or bullish candlestick ends in a strong feeling.

A long white candlestick and/or green indicates a high demand, which is a great buy pressure caused by a low supply. The higher the height of the real body, the more it was the intense pressure of purchase; As a result, forms a long and strong bullish candlestick.

A long black candlestick or red indicates a heavy supply, which leads to a sold enormous pressure due to low demand. It is the height of the real body; The Lake was the intense pressure of sales, as a result, will form a chandelier, and durable.

Shorter is the actual body of the candles; Less is the difference between the opening and closing rates of a currency pair. A short body reflects i.e. demand stability and supply are equal in the foreign exchange market and there is this pressure to buy or sell the currency pair, as a result, candlestick ends with a short body that reflects the market Sentiment as I head to co stats. E. non-trend stage.

Understanding different types of candles

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In the quoted USDCHF illustrated, 4 hour chart, you see that because of higher demand at the level of support, price results very quickly appreciated in long and strong bullish candlesticks and after a few days, the market was stable, namely, supply and demand were almost immediately, there was no pressure to buy or sell the resulting in smaller and weaker candlesticks.
What information of market offers lower shadows and higher?

Normally you see long lines vertical lines above and below the real body; These vertical lines are called shadows and play a very important role in the analysis of price action.

READ :

• Summary: Japanese candles and favorable patterns
• Formation of a Japanese candlestick and what are the features and benefits
• Understanding different types of candles

The extremities of shadows means the highest and lowest price negotiated according to a certain time frame. If a chandelier has a shadow, then reflects trade activity information in a trading session i.e. the trade was very active and volatile throughout the session, although the opening and closing rate. If a chandelier has a shallow and/or a very small shadow, it means that the price action very influenced by buying or selling pressure resulting in a closing rate very close to the highest or lowest traded prices.

A short time top and bottom shadow of a chandelier means that at the beginning of the sailing, the bears were stronger-that is to say, there was a very high commercial pressure, but for some reason can be an economic press release or some other reason appeared creating a in Orme demand in the market that results in strong pressure and great buy and as a result, the closing price was not only higher than the minor trade Award but even higher than the opening price.

A shade less than superior long and short of a chandelier means that at the beginning of the sailing, the Bulls were stronger that is, there was a very high pressure to buy but for some reason, it may be a basic press release or another reason that appeared reduced the demand and resulting in strong and huge sales pressures, and consequently, the closing price was not only lower than the best prices negotiated but even lower than the opening price.

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