Candle Chart Foundation
Candle Chart Foundation
Hello! Today, we’re going to take a quick look at candle charts that play an important role in trading.
Composition of Candles
A candle consists of a body and a shadow that appears above and below it. The body represents the market price and closing price, and the shadow represents the highest and lowest prices.
A rising and falling candle
The rising candle has a higher closing price than the market price, with a body rising high above. On the other hand, the falling candle has a lower closing price than the market price and has a lower body.
Understand the overall trend
Combining several candles and analyzing patterns can help you identify market trends. This can help traders determine their positions and predict trends.
Different Candle Patterns
There are various candle patterns, such as hammers, reverse hammers, and shooting stars. These patterns may indicate a strong trend or a transition away from lateral scopes.
Candle charts are powerful tools for visual representation of market sentiment. They help you effectively trade by identifying the forces of rise and fall, support lines and resistance lines.
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