![]() A popular time-frame is the daily time-frame, so the candle will depict the open, close, and high and low for the day. The period that each candle depicts depends on the time-frame chosen by the trader. Candlesticks can also form individual formations which could indicate buy or sell entries in the market. For example, groups of candlesticks can form patterns which occur throughout forex charts that could indicate reversals or continuation of trends. ![]() Price action can give traders of all financial markets clues to trend and reversals. Candlestick price action involves pinpointing where the price opened for a period, where the price closed for a period, as well as the price highs and lows for a specific period. ![]() ![]() It’s important to understand the key components of a candle, and what they indicate, to apply candlestick chart analysis to a trading strategyĪ candlestick chart is simply a chart composed of individual candles, which traders use to understand price action.Traders generally prefer using candlestick charts for day-trading because they offer an enjoyable visual perception of price.Candlestick charts differ greatly from the traditional bar chart. ![]() 15, 2022 Reading candlestick charts – Talking points: ![]()
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