The Candlestick era

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Today we will learn about candlestick components. 

Trading glossary 

Big blocks - Real bodies.

Real body-  White part of the candlestick. 

Lower shadows: Vertical lines above these blocks are upper shadows, and the lines below.

Small bodies - Show that low buying or selling pressure shadows indicate how high or low the price has been in a particular session.

Candlestick components 

Just like a bar chart, daily candlestick shows the markets open high, low and closing price for the session. The candlestick has a white part, which is called the real body. The real body represents the price range between the open and close of the day trading. When the real body is filled in or black, the close is lower than the open. When the real body is empty, the close is higher than the open or green. It is the same. Here's a quick recap about candlesticks anatomy. The big blocks are called real bodies. The vertical lines above these blocks are upper shadows, and the lines below are called lower shadows. For Bull candle, you have an open, low, high and close.

Similarly, if it's a better candle, the open, high, low and closing prices are given large rail bodies indicate strong buying or selling pressure. Small bodies show that low buying or selling pressure shadows indicate how high or low the price has been in a particular session. If the price. If the price is long, the traders pushes back towards the opening. 

Traders can alter the colours in their trading platform. For example, a down candle is often shaded red instead of black, and up candles are often shaded green instead of white, but this doesn't matter.

What is the difference? 

 The shadows or the weeks the shadows show the high and low prices of the sessions. Trading in the upper shadow on a down candle is short. It indicates that the open that day was near the high of the day. A short upper shadow on an update dictates that the clothes were near the high. The relationship between the base open, high, low and close determines the look of the daily candlestick. 

Real bodies can be long or short, and black or white shadows can be long or short. Bar charts and candlestick charts show the same information, just in a different way. Candlestick charts are more visual due to the colour-coding of the price bars and the thicker real bodies, which are better at highlighting the difference between the open and the close. So let's have a look at the basic candlestick patterns. Candlesticks are created by up and down movements in the prices. While these price movements sometimes appear random at other times from patterns that traders use for analysis for trading purposes, there are many kinetic patterns. So here's assemble a link to get you started. Patterns are separated into two types. Bullish and bearish. Bullish patterns indicate that the price is likely to rise, while bearish patterns indicate that the price is expected to fold. No pattern works all the time as a candlestick. Patterns represent tendencies in price movement, but this is not guaranteed. 

So let's have a look at Doji. There are a few types of Doji. 

A Doji candlestick has the same opening and closing price. Its real body appears as a horizontal line. It represents indecision in the market. Let's take a look at what's going on, and when a Doji forms a session started, buyers drove up the price, but it could also have been sellers driving the price down. Their sellers push the price back to its opening price and even lower just to meet the buyers.

 Then they jump in the market again and drive the price up to its opening price one more time. This process could have been repeated several times at the end of the session when the price close is the same as it opened. As you can see, there's no absolute conviction about which direction the price should go, and that's what makes the candlestick neutral. If we see a Doji after the strong bullish move and at a resistance, it could indicate that both have become exhausted. Bears are ready to take control or the opposite in a downtrend after solid selling pressure. A Doji appearance at support could indicate that the boots are getting ready to go.

P.s The most crucial thing to remember when trading candlesticks is to look at the context.

 A Doji in the middle of a trading range means absolutely nothing, and you should never trade it a Doji at a support or resistance level. However, it's an entirely different story, and you can trade it. Now let's get into the exciting part. Doji has appeared at a resistance. Remember, Doji is a neutral signal, so don't jump in the market right.  Instead, let the market come to you. Wait for a close below. The Doji is low and only then open a short position. When placing your stop loss, you have to ask yourself a question, what is the price that tells me I was wrong? In this case, a candle step closing above the Doji high would invalidate the reversal signal so that I would place my stop a couple of pips above the Doji high. A driver plies Doji is formed from the sessions opening and closing prices near the session high. It is a bullish reversal signal, so we only look for a Dragonfly Doji in a downtrend. Bears were in charge at the start of the sessions. They pushed the price lower, but then both rejected this lower level and could drive the price up to its opening, where it also closed a Graystone. Doji is another tax Doji. It is the exact opposite of Dragonfly Doji. It is a bearish reversal pattern, and we will only look for it in an uptrend. Bears were in control. They pushed the price up, but the new high was rejected by pairs who managed to push the price back down.

The long, like Doji, is a candle that has the same opening and closing price but has very long shadows on both sides. The candle signals complete indecision in the market between the bears, and it's not advisable to trade it on its own. Candlestick signals are valuable only when looked at in the context. A doji in the middle of the range is a no go and a doji at a support or resistance, however, is something to be looked at next. Marubozu is the exact opposite. Candlestick to a Doji represents indecision in the market. Marabou shows total conviction about the price. Directions abolish Marubozu. It is formed when the opening price is also the sessions low, and the closing price is equal to the sessions. 

These candlesticks have no shadows and show that the booth or the buyers are in control for the whole session.

That's all for today, folks!!!

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