Wednesday, October 31, 2018

Learn How To Read The Easiest Forex And Binary Trading Candlesticks

How do you read candlesticks in trading?

One of the steps in analyzing with technical is to read candlestick charts. According to technical analysis, from the data obtained by the candlestick that has occurred, we can estimate what the candle will be like that will also occur.

Is it possible for the candle to go up or the candle down. Until if we have a description of what candles will also occur, we can decide whether to buy / call or sell / putt.

An easy way to read candlestick charts:

With psychology, the candle happened because there was a push for sales and a push for purchases. The following inequality in the amount of pressure and push results in a different form of candlestick between the two.

The sequence of candlesticks:

1. When there are several consumers who make a purchase, the market price increases until at the end of the market period closes above the opening price, in the end there is a bullish candle.

The amount of encouragement to buy can be measured from market movements from Low to Close. The greater the push, so the bigger the body candle that occurs. Until the size of this green body candle gives consumers dominance.

2. When many traders make sales, the market price decreases, until at the end of the period generally the market closing value is below the opening price. The following conditions result in a candle that is colored red (bearish).

On the candle Down (red) the seller's pressure was measured from High to Close. The greater the pressure of sales, so the price will also fall further and further make a long red body candle. Until the size of the red body candle gives the seller dominance.

To ensure the direction of the candle after that, there are many things that need attention. Namely:

  • Seller / buyer resistance
  • Acceleration / increase in trend direction strength
  • Slowing / weakening strength of trend direction
  • Trial Behind the direction of the trend movement
  • Consolidation

1. Resistance From Seller or Buyer

The point is when one party controls the market so the candle will also move in one direction. For example, when the consumer dominates the market, the candle is always going up. As long as there is no resistance from the seller (no meaningful sales) the candle that occurs follows the direction of the candle first.

Until one time some traders feel the price has been very high or has been very tired, so the selling action came out as a form of resistance from the seller. One of the triggers is profit taking.

The form of resistance is indicated by the tail of the candle. When resistance gets bigger than domination, so after that the parties that fight are the ones who win and there will also be changes in market dominance, until the trend will also reverse direction. From here we can estimate that the candle after that will also reverse direction too.

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3. Candlestick Weakens the Strength of Trend

The opposite of attraction, doubts the trader to open a place to cause the market to slow down. This doubt is due to traders judging that the market is very high, very low, bored or the market is in the support & resistance zone. With no trader opening a place, there is no energy to move the market.

In this situation we must be ready to open a place behind the direction, because the market will also be taken over by one of the parties.

4. Candlestick Signals Behind Trend Directions

In a bored market place there will also be a party trying to end the ongoing trend, which wants to reverse the direction of one trend. But sometimes the time of the business begins with a state test, which is testing whether the market is truly reversible or not. This is followed by a long candle tail opposite the direction of the ongoing trend.

Chronology is the previous period is completed as if there will also be a candle in the opposite direction with the candle first. Towards the end of the period the candle is pulled back and closed so that it is aligned with the candle first.

There is an experiment behind this direction giving an indication that it will also go backwards. Until this situation we can get ready to open a place that is against the trend.

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5. Consolidating candlesticks

Slowing body candles and one resistance give if some large traders want the market to reverse direction. But when suddenly a candle comes out that gives interest remains in line with the ongoing trend, this is questionable.

Can be assumed when most people want one thing, but there is one person who wants different things, so if they see it from their energy, this one person's energy is actually small and can be said to be empty, so it is easy to conquer.

The convergent situation of this candle can also take place because there are specific parties who want to get the best price, even though they already know the market will also reverse direction, but still attract it to be higher or lower first to get a better price, new then the market is behind.

In this situation, we see another sign, if a different sign says convergent as well, so we can open a place that is contrary to the ongoing trend.


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