Reblog: How to Trade with Candlestick Charts Like a Pro


WHILE everyone is used to seeing the conventional line charts found in everyday life, the candlestick chart is a chart variant that has been used for around 300 years and discloses more information than your conventional line chart.

The candlestick is a thin vertical line showing the period’s trading range.

A wide bar on the vertical line illustrates the difference between the open and close.

Note: The daily candlestick line contains the currency’s value at open, high, low and close of a specific day.

The candlestick has a wide part, which is called the “real body“.

This real body represents the range between the open and close of that day’s trading.

When the real body is filled in or black, it means the close was lower than the open.

If the real body is empty, it means the opposite: the close was higher than the open.

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Reblog: Candlesticks – Forget Candlestick Patterns – This is All You Need To Know


Understanding candlestick patterns goes far beyond just remembering and recognizing certain formations. Many books have been written about candlestick patterns, featuring hundreds of different formations that supposedly provide secret information about what is going to happen next.

Truth be told, it will make no difference to your trading performance whether you know what the Concealing Baby Swallow, Three Black Crows or Unique Three River Bottom are.

What really matters is that you understand what the candlesticks in front you of you tell you about price structure, trend strength, buyer/seller dynamic and the likely path for future price movements. 

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