I have explained about four different candlestick patterns, and I have received many questions. From this I realized I must explain more about the types of candlesticks.
This is a very broad topic and I can spend a few days just explaining the basics of candlesticks, and if you try to search the internet there is a lot of information about candlesticks. I try to take all of that information and make the article as short and clear as possible for you.
Please remember, one candlestick does not and cannot show the direction of the trend, but each candlestick is a reference for traders to predict the possibility of further market movements. The trend was formed by several candlesticks, both bull and bearish candlesticks.
Do you remember when I explained about the parts of an ordinary candlestick? The solid part is called the body. This section shows the open and close price ranges.
Obviously, the longer the candlestick is, the further it closes from the open. Right? Let's talk about bull candlestick. The longer the candlestick bull is, the further it closes above the open, meaning that the momentum is high and aggressive. Actually the term "aggressive" here is not a positive connotation, because the long bull candlestick can sometimes be seen as a turning point of the ongoing trend at the time.
The same thing applies to bearish candlestick, the further it closes below the open, meaning that the momentum is high and aggressive. Just like a bull candlestick, a long bearish candlestick can sometimes be seen as a turning point from the ongoing trend at the time.
I give 1 cool tip for Forex traders. In Forex trading, a long bull candlestick can be seen as an aggressive purchase of assets, and from a long bearish candlestick you can know that there is panic and fear in the market, where traders sell assets.
Marubozu in Japanese means "bald". This candlestick is in bull or bearish form, and the momentum is higher than ordinary candlestick. It is easy to recognize the Marubozu candlestick because this candlestick has no upper shadow or lower shadow, meaning that high and low are also open and close.
Marubozu's candlestick bull will form when close is equal to high, and open is equal to low. On Forex, this candlestick shows the possibility of a BUY signal where buyers are in control of trading transactions. Just like this, in Binary Options, this candlestick shows a HIGH signal, that momentum is now strong
This is a very broad topic and I can spend a few days just explaining the basics of candlesticks, and if you try to search the internet there is a lot of information about candlesticks. I try to take all of that information and make the article as short and clear as possible for you.
Please remember, one candlestick does not and cannot show the direction of the trend, but each candlestick is a reference for traders to predict the possibility of further market movements. The trend was formed by several candlesticks, both bull and bearish candlesticks.
Do you remember when I explained about the parts of an ordinary candlestick? The solid part is called the body. This section shows the open and close price ranges.
Obviously, the longer the candlestick is, the further it closes from the open. Right? Let's talk about bull candlestick. The longer the candlestick bull is, the further it closes above the open, meaning that the momentum is high and aggressive. Actually the term "aggressive" here is not a positive connotation, because the long bull candlestick can sometimes be seen as a turning point of the ongoing trend at the time.
The same thing applies to bearish candlestick, the further it closes below the open, meaning that the momentum is high and aggressive. Just like a bull candlestick, a long bearish candlestick can sometimes be seen as a turning point from the ongoing trend at the time.
I give 1 cool tip for Forex traders. In Forex trading, a long bull candlestick can be seen as an aggressive purchase of assets, and from a long bearish candlestick you can know that there is panic and fear in the market, where traders sell assets.
Marubozu in Japanese means "bald". This candlestick is in bull or bearish form, and the momentum is higher than ordinary candlestick. It is easy to recognize the Marubozu candlestick because this candlestick has no upper shadow or lower shadow, meaning that high and low are also open and close.
Marubozu's candlestick bull will form when close is equal to high, and open is equal to low. On Forex, this candlestick shows the possibility of a BUY signal where buyers are in control of trading transactions. Just like this, in Binary Options, this candlestick shows a HIGH signal, that momentum is now strong