TIPS TO READ CANDLESTICK SIMPLE AND ACCURATE, DOES NOT NEED TO BE MEMORIZED

TIPS TO READ CANDLESTICK SIMPLE AND ACCURATE, DOES NOT NEED TO BE MEMORIZED


Read candlestick not merely memorize and recognize formations-formasinya only. Many books refer hundreds of candlestick patterns, with each pattern has information and description to find out what will happen next in the Forex market.

In fact, memorize hundreds of candlestick patterns do not make significant difference in the performance of your trading. Call it Tree of Black Crows, Concealing the Baby Swallow, Unique Three River Bottom and whether what it's called. Too much, make dizzy, and impractical.

Actually, you don't need to memorize all the candlestick analysis for pattern. You just need to know the big picture how to read candlestick, as each candle is basically been able to inform the price structure, the strength of the trend, the dynamics of the Buyer against the Seller, and the projection of the direction prices will move later.

Four Basic Elements As A Guide Read Candlestick

Step 1: war Candlestick

Before we begin to explore the important elements for analysis of candlestick, we must have the correct perspective first. Let's just say the price movement that occurs due to the war between the Buyer and the Seller. Each candlestick was a battle during the war, and the fourth element of the candlestick tells who's winning, who's resigned, who retained control, and which side has a greater chance to win the next battle.

Step 2: understand the context (the big picture) when Candlestick Analysis

It needs to be underlined, not candlestick can be observed in one pattern only, without knowing the price dynamics before. Candlestick analysis must also take into account the scrutiny with price movements. Therefore, whenever we try to read a candlestick or the formation of prices, we have to question some of the following:
Whether the latest candlestick smaller or larger than the previous candle?
If the size changes mean?
Whether the change occurs when the inactive trading sessions? For example, the candlestick on the currency pairs EUR often mengkerut or shrink at the Asian session because the volume of trading is also small.
The above points are important to held so that we avoid the narrow thinking that limits the understanding of the description of the magnitude. Armed with a handle that, we can now free 4 important elements to read candlestick:

Element 1: size of the body of the Candlestick
The size of the body (body) candlestick is a good starting point because we can be a lot of information from them.
The length of the body of the candlestick shows the power of one of the parties.
Elongated body size means showing rise momentum.
When the Agency got smaller, it means that the momentum also grew slowly.
In short, length indicates how far the price has moved for the duration of the candle (candle per timeframe).
Element 2: long axis Candlestick (Wick)
The long axis of the candlestick informs the volatility of price movement.
The long axis indicates that prices are moving quickly for the duration of the associated candlestik, but experiencing rejection because of resistance.
If the axis length increases, meaning the increasing volatility. This often occurs at the end of a trend, before the price reverses direction, or when the price approaches a Support Resistance is important.
Element 3: the ratio of the length of the fuselage and the axis
Start from here we've been able to get the big picture in reading candlestick.
Which is longer, the agency or the axis of a candlestick?
At the moment the trend with high momentum, you'll often find long-body candlestick with a smaller axis.
When the markets are being hit by the uncertainty, volatility increases so that the body of the candlestick tapers out, but the longer axis.
Element 4: position of the body of the Candlestick
This element is the development of the previous element.
Did you find a long wheelbase with a candlestick body positions are at one end? It showed resistance.
Candlestick with the position of the body in the Middle axis of the bottom and top indicate doubt/uncertainty in the market.
By understanding the basic elements of all the above, we can read a candlestick with no need to memorize the name of the form or one by one.



The seepance of the cleverdlestick on the honorive trading platform (MT4, cTrader, Tradingview, etc.) could have been different. But by understanding the 4 elements of nature, we clever still read cleverdlestick with telling, however it sees on a chart.

Cleverdlestick Analysis Of The Example In Chart
Up here, we've been peeling each elements basic to cleverdlestick analysis. Now, with the tellledge that we clever use them to graph the price of dissect.
Example #1
Note the direction of price movements on the chart below. Here is a blurb approxifriendly the information based on the analysis of price movements of a cleverdlestick:
During the Dindividualstrfinish, cleverdlestick demonstrateing long red body with small or no axis wheelbase altogether. That is, mo

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