recommend reading the Lesson 6 before considering this item.
candle charts became extremely popular in the 90s. These types of charts have their origins in Japan where they were commonly used for trading rice. Then it was used in the Japanese stock market, and then moved to the West.
As mentioned in the previous chapter the components of the graph (see previous chapter).
One of the main reasons it is so popular these graphics are the forms they take with regard to market performance, review some of them.
Activity (long and short candles)
When we mention the word activity means the number of people and amounts to be traded. Thus a period of activity there are few people as low amounts trading at the market and a period of high activity are many people and a lot of volume (amount) traded.
When the body of a candle is narrow means a day of low activity and a long body means high activity. In the chart below we see a period of high activity (large candles) and then a period of low activity (short candle).
Highlights long and short body
When we have the candlestick chart as shown in the figure means that buyers and sellers began balanced, then gave way some of them produced a great movement in the transactions, then equip forces returning to a situation similar to the original.
Indecision
Through the graphics you see indecision in the markets, this happens when the candles are also short and long strands, only the body is located exactly through the locks. The following is an example of a candle that shows the market indecision.
Marubozu
When the candlestick chart is Marubozu means no roving is, the body comprising all the wick. This status means a complete market decision to mark a trend. Closing prices as home fits the maximum and minimum and thus sets the trend
The following figure shows a candle in a state Marubozu:
Doji
The Doji candle type are those that the price Home is very similar to the price of forming a body extremely close, almost a line.
There are 4 types of Doji forms and are significant signs of change in trend when preceded by other forms of candles.
The first example is when we have a great rise in the prices given by a candle almost completely Marubozu (almost without a wick), then preceded by a Doji. We understand that there was a large buyer power (bulls) and sellers (bears) lost ground. But the next day the bears running counter force to the bulls giving a signal that the uptrend is over.
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