Candlestick analysis allows you to visualize price trends and gain insight into the behavior of financial markets to build effective trading strategies.
One of the methods traders most commonly used to show prices and study financial market movements is called candlestick analysis, an analysis based on information provided by Japanese candlestick charts. By analyzing a single candlestick or a set of two or three consecutive candlesticks, traders can better understand what is happening in the market.
Each candle contains information about 4 prices: the high, the low, the open, and the close. A candle body reflects the net price movement between open and close, while the wicks show reversals that occurred within the timeframe of the candle.
Each candlestick, therefore, provides an easy-to-decipher picture of the price action. The length of the wicks versus the length of the body, combined with whether a candle is bullish or bearish, can be used to determine a signal for the price action.
PLEASE SUBSCRIBE AND COMMENT @InvestorsTradingAcademy
Comments (0)