The Shape of Basic Candlestick and Its Character
Candlesticks are a type of price chart used in financial markets. This type of chart originated two centuries ago in Japan and after that it was in great demand by traders. This candlestick is one of the analyzes that can be used to find opportunities. Candlesticks are known for their shape that resembles a candlestick. The characteristics of this candle will greatly support reading accurate market opportunities. Reading candlesticks is not arbitrary, just memorizing and getting to know the formations. These are the shapes and characteristics of candlesticks:
Candlestick Body Size
The element of measure can help identify who is in control, be it a buying trader or a selling trader. The larger or longer the candlestick size, the stronger the control holder. On the other hand, a smaller size indicates that neither a buying trader nor a selling trader can move the price too high.
Candlestick Shape
The length of the tail of a candlestick shows the volatility in price movements. The longer the tail of the candlestick indicates that the trader in control had moved the price far enough before being rejected due to a backlash from other traders.
The longer the tail of the candlestick, the greater the price volatility. Candlesticks with short bodies at the ends and long tails indicate a reversal, generally found in areas of support or resistance. While a candlestick with a short body and in the middle between two long tails indicates the market is in doubt, both buyers and sellers traders.
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