Dating gide candlesticks
Candlesticks display all the market information you need such as the open, close, high, and low.However, they also show the level of emotional volatility within that trading period.However, with hollow candles, more information can be extracted quicker as there more setups to watch. As you can see from above, a candle gives you the high, low, open, close and market direction in an easy-to-read, visual form.However, their usefulness is not in what an individual candlestick can do, but the patterns that they form and the information that can be used from them.Candles can be drawn in any colors you choose using modern trading software.However, the most common are green bodies for a rising price and red for a falling price but most software will let you change to whatever color arrangement you want.If the main body is green, this indicates the price is trading higher than the previous close.
The value in all the patterns that are commonly used for trading is that they can be used to potentially predict future price action.
This type of analysis is commonly thought to have been developed by a rice trader named Homma who was from the small town of Sakata in Japan.
Pre-dating the western bar chart by a century, Homma created what were to become modern candlestick charts because he realized that rather than supply and demand, it was trader emotion that was the biggest variable driving the price swings in rice.
This is a Guest Post by @Trend Spider and originally appeared on their Trend Spider Blog.
Whether you are new to trading or not, you have probably seen those stock photos of someone sitting in front of a screen full of charts that accompany every article about trading.
Through these two components, we can see at a glance the opening price, closing price, highest and lowest prices of the market for that period.