How to Trade With Candlesticks
Candlestick patterns are one part of technical analysis in forex trading or other community trading. There are several types of this pattern and can help traders read price predictions within a certain time. Candlestick patterns or candlestick patterns have been introduced in Japan since the 17th century. At that time, a pioneer of analytical techniques named Munehisa Homma created this pattern so that he could see the movement of rice prices in his area.
Although it seems complicated, but how to read it is actually easy. Because, in technical analysis there is one assumption that explains that history will definitely repeat itself in the pattern of price movements in the future.
To be able to learn various types of candlestick patterns, traders must first know how to read them. There are at least three things that are the basis for reading this candlestick pattern, namely red and green, four price positions, and also the direction of the axis.
Candlestick Contains Four Price Positions
In the candlestick pattern, there are four indicators that traders must know, namely:
- Open : The price applied when the trade is opened
- Low : The lowest price on the day.
- High : The highest price applied today
- Closed: The price set after the trade closed yesterday.
The size of the candlestick will also show how much price has moved during the duration of the candle.
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