The basic candlestick shape is a rectangular "candle body" with two vertical "wicks" – one top and one bottom – protruding from the candle body. You draw candles on charts where price is the Y-axis and time is the X-axis. The candle body top and bottom represent a currency pair's ...
The pattern includes a gap in the direction of the current trend, leaving a candle with a small body (spinning top/ordoji) all alone at the top or bottom, just like an island. Confirmation comes on the next day’s candle, where a gap lower (abandoned baby top) signals that the prior...
Be aware that some imported candles, mostly from China, have been found to contain lead wicks. Fortunately, the U.S. Consumer Product Safety Commission has proposed the banning of lead wicks in all candles sold in the United States If you are concerned that your candle may have a lead wick...
A MarubozuCandlestick patternis a candlestick that has no “wicks” (no upper or lower shadow line). A green Marubozu candle occurs when the open price equals the low price and the closing price equals the high price and is considered very bullish. A red Marubozu candle indicates that ...
A volatile market is one with large price moves within specific periods. It is usually characterized by a long body of candles and wicks. While this is a very risky environment to trade, it poses more trading opportunities to a risk-taker. The only drawback in trading in this market is ...
For good price action analysis, it is probably best to use a trading platform that provides candlestick charts. This is because analysing candle wicks and body’s is a large part of price action analysis. I would recommend the highly popular and widely available MetaTrader 4 (MT4) trading ...
And Renko bars do a splendid job clearly showing the support and resistance levels, as well as the underlying price action minus the noise. Do Renko charts give you an edge in the markets? Not really. But mastering Renko bars can certainly help in improving your trading confidence. Give this...
s drop. In the parlance of candlestick analysis, when this happens – as it did on the Nikkei in May – large “shadows” or “wicks” appear, indicative of a major shift in attitude in the middle the period. This produced an incredible example of what technician Martin Pring fittingly ...
are referred to as wicks or tails, and they represent the day’s maximum high and low. Taken together, the parts of the candlestick can frequently signal changes in a market’s direction or highlight significant potential moves that frequently must be confirmed by the next day’s candle. ...