![]() ![]() The lines marked above and below the real body are known as the shadows or wicks. However, many platforms allow traders to change the colors of up and down candlesticks, depending on personal preference. If the closing price is lower than the opening price, it is a downward candlestick, and the real body gets shaded red. If the closing price is higher than the opening price, it is an upward candlestick, and the real body gets shaded green. Candlesticks are generally color coded, to make them easier and faster to interpret. This range is demonstrated by the height of the candlestick. The real body displays the range in price between the period’s opening and closing price. Each candlestick has three parts- the main body, the upper shadow, and the lower shadow. Colors – Up and DownĮach candlestick displays the market’s high, low, open, and close price of the period. Some traders like looking at charts with 5-10 second resolution, but for most day traders, a 1 minute resolution chart is perfectly fine. ![]() This time interval is sometimes called the chart’s resolution. The most common time intervals are 1 minute, 5 minutes, 30 minutes, and 60 minutes. Time IntervalĮach candle represents a time interval, and the market price movement during that segment. Traders use candlesticks to make decisions about the markets, based on patterns that emerge. This is done by representing various sizes and directions of price moves with different colors. Candlestick charts are used to display market data in a simple and compelling way to traders. ![]()
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