Read Candlestick

Look at the picture below. It's called "Candlestick Charts" because its shape is like a candle. Netdania charts are taken from (www.netdania.com), a provider of realtime charts for forex. In addition to Netdania chart provider there are many others which can be accessed freely without having to pay a dime. Each provider has a chart and it looks different from each other. Not a problem according to BelajarForex because if we can use a single chart platform was supposed to be another platform just needs a little adjustment.

The graph was created in the 17th century by the people of Japan that was originally used to monitor the movement of prices on the commodity products. Steven Nison is known as the first to popularise this model chart. Its very representative because it consists of High, Low, Open and Closing Price make this the most popular chart used by forex analysts. If you are unfamiliar with securities products, this graph is never used to monitor prices. Why? Simple, requires only a securities price closing price just isn't as in forex trading.

In fact there are more types of charts such as bar charts, line charts, chart dot, and more. But candlestick was indeed more widely used by traders because it looks forced aka easy to read.

 

 

The image above is a chart for the EUR/USD exchange rate. If you see a blue line dotted the top of that is the last price of the EUR/USD which amounted to 2.0052 Means one price is EUR USD 2.0052 (remember how to read quote ever explained in a previous module). See also small writing on the top left that says "M15 = 15 minutes. It means that one candle (one stem) represents the price movement for fifteen (15) minutes.

Candlestick interpretation based "pattern" that is. Green Candle means price moves up or closing price higher in value than the opening price. Instead, the candle is red it means price moves down or clsoing price lower in value than the opening price. Then what is the vertical line above and below that of the candle? It was the highest price and the lowest price during a given period. In the example above is the lowest and highest price for each hour due period is used per-hour.

If using the term Bullish and Bearish so green is a Bullish pattern and Red is a Bearish pattern. For more details look at the picture below:

 

 

Don't be surprised when you see different colors for the two above rates for example blue with red. No problem, depending on the respective chart provider in providing color.

Well, now look at the picture below:

 

This is a candlestick to GBP/USD chart period by using 1 h (meaning 1 Candlestick represents the movement for 1 hour). Axis "X", especially the section that I give the sign of the red box is the movement of the clock shall we discuss. Hours of shows at 09.00 and 10.00 Candlestick on top of it which means it represents the movement from 09.00 to 10.00, on the image is shown by the Red candlestick. Here's how to read it: at 9: 00 am price opened at 1.9987 for later on the price closed at 1.9970.

This was followed by the next candle green from 10.00 until 11.00, price opened at 1.9971 and then closed at 1.9974 at 11.00, and so on and continues to the other candle.

Now comes the question, whether the opening price was to be equal in value to the closing price on the previous candle? Does. Not necessarily, and in fact it often happens that the opening price is different from the closing price on the previous day. This often happens when passing through the holidays (Saturday and Sunday) there if there are special events. The so-called simultaneously "gap." Gap commonly used technical analysts to predict prices.

For more details look at the picture below:

A discussion of the gap will be separated from this article because it is already alluded to in technical analysis and is quite extensive. For a while it is enough for us to be able to read a candlestick before knowing the technical analysis. Don't forget to read other articles on this website to deepen Your analysis capabilities.

Well, now you already know the key reading forex charts at least could've been grasping the direction of price movement. You may think: "Gotcha! Finally I've been able to open a real account! Woo hoo ... "."

Wait a minute. Can read it not necessarily can benefit. Continue your forex school until it is finished before you decide to open a real account. To meet at the next class.

We will begin to study technical analysis! Yippee. Prepare your brain men!