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The candlestick charts are one of the most popular tools used by Forex traders to analyze the market. Candlesticks provide a visual representation of the way in which the price of a currency pair has evolved over a period of time. In correct interpretation of these models, a trader can make business decisions more informed and cost-effective.
A chart candlestick is composed of four main parts : the body, the drill bit high, the drill bit low and the shadows. The body represents the range between the opening price and the closing price for a pair given over a period of time ; it is usually colored white if the price at the end is higher than the initial price, or black if it is the opposite that occurs. The wick high indicates the maximum level reached by a active during this period ; it is located directly above the body of the graph and can be either white or black. The wick bass shows up where this title has lower during this interval ; it is directly under the body of the graph and can be either white or black. Finally, the shadows (or tails) are located at the extreme highs and lows achieved by an asset during its respective session ; they are not an integral part of the main body of the chart because they do not reflect his range opening/closing to be accurate .
In interpreting correctly the models trained by different types of candles , a Forex trader can get practical information on the potential action of the currencies that you trade . For example , some models like 'Doji' suggests that the existing trend may soon change , and 'Hammer' to indicate that the buying pressure increases . In all cases , it is important for a Forex trader to understand how to recognize each type of pattern so that it can make business decisions more informed .
A chart candlestick is composed of four main parts : the body, the drill bit high, the drill bit low and the shadows. The body represents the range between the opening price and the closing price for a pair given over a period of time ; it is usually colored white if the price at the end is higher than the initial price, or black if it is the opposite that occurs. The wick high indicates the maximum level reached by a active during this period ; it is located directly above the body of the graph and can be either white or black. The wick bass shows up where this title has lower during this interval ; it is directly under the body of the graph and can be either white or black. Finally, the shadows (or tails) are located at the extreme highs and lows achieved by an asset during its respective session ; they are not an integral part of the main body of the chart because they do not reflect his range opening/closing to be accurate .
In interpreting correctly the models trained by different types of candles , a Forex trader can get practical information on the potential action of the currencies that you trade . For example , some models like 'Doji' suggests that the existing trend may soon change , and 'Hammer' to indicate that the buying pressure increases . In all cases , it is important for a Forex trader to understand how to recognize each type of pattern so that it can make business decisions more informed .
