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Showing posts from September, 2014

Candlesticks In Day To Day Trading

The candlestick chart is one of the most used charts in trading nowadays. It is thought to have been developed in the 18th century by a Japanese rice trader Munhisa Homma. He discovered that by drawing the price movements as a “candlestick” he will have more information that can be used in trading. In time analysts and statisticians have discovered patterns which indicates with a certain probability a continuation or a reversal in the price action of a certain instrument. Let us see how a candle is formed and what its characteristics are: A bar shows the open price, for a specific time frame, the high and the low of the session and the closing price of that time interval. In the image you can see that the open price is on the left and close price on the right. Because the close price is higher than the open price we consider it to be an ascending candle. If we are to draw a right horizontal line at the open price and a left horizontal line at the close price, like i