Jump to content

Welcome to Digital Money Talk Forum - Forex, Ecurrency exchange and Cryptocurrency Forum - Sponsored by 1xBit.com
Register now to gain access to all of our features. Once registered and logged in, you will be able to create topics, post replies to existing threads, give reputation to your fellow members, get your own private messenger, post status updates, manage your profile and so much more. If you already have an account, login here - otherwise create an account for free today!



1xBit



Read our Advertising Disclaimers


Refund Policy


Photo

Candlestick


  • Please log in to reply
15 replies to this topic

#1
ellliottt

ellliottt

    Advanced Member

  • Members
  • PipPipPip
  • 103 posts
Candlestick

Let us now discuss about the indicators used in forex trading.
The first indicator that I want to discuss is the candlestick. You might wonder: why candlestick anyway? It's not just one indicator ... just chart type ... yes indeed. Candlestick is one type of chart that is usually available in all trading platforms. Type chart on this one I think is an indicator that "must" be understood by the trader. Due to the understanding of the candlestick, a trader would be very helpful in understanding the movement of the chart. In fact, even if a trader says he's trading without indicators aka naked chart, usually does he still based on the candlestick ...

Candlestick actually provide information similar to bar charts, but with a more interesting and informative. Candlestick chart is the most easily interpreted, since each has to give information about the power of buy-sell, as well as the price of his open-closed state.

Let us consider the structure of a candlestick.

Posted Image

Candlestick was formed from the data of open, high, low and close:

If within a period of time close above open, then the transparent or white candlestick is formed
If close below open, then the black candlestick is formed
White or black part of the candlestick is called the body or bodies
Vertical line above or below the body illustrates the range of high / low and is called the shadow or some call it a shadow or tails: D
The peak of shadow or shadows or tails of the high value
The base of the shadow or the shadow or under the tail is low value

Well, so, from a candlestick, we can know: the high-low-closed, will also know the power of buy-sell, the volume of transactions within the period (time frame) in question and from there to know the tendency of trends that happen;)

In general there are 2 types of candlestick, that is black and white, each with long and short.

Posted Image

Candlestick white body that had shown that prices closed with a value above the open so that the general trends occur trend rise. And vice versa ...

Next, we need to know as well as various kinds of candlestick and trends that will arise in the movement chart:)

Some type of candlestick who need to know include:

Spinning tops



If spinning top this happens, it means that there are not many buyers or sellers are in action, so that tends to happen a reversal or trend turned, at least temporarily.

Marubozu


The longer the body of the candlestick, the stronger the buy-sell pressure that occur ...

Let us examine the relationship between type candlestick with a trend on the chart below:

Doji

Actually, variations of shape candlestick many more. we will know the trends that will occur with the emergence of each form of candlestick charts diligently observe and pay attention to trends trends related to the emergence of forms of candlestick which seemed on the chart.
  • 0

#2
rexway

rexway

    Advanced Member

  • Member
  • PipPipPip
  • 3,349 posts
For me i donk welcome candle stick,am alwas confused with them i appreciat piechat the most to determind market movement and viceversa
  • 0

#3
stezz

stezz

    Advanced Member

  • Members
  • PipPipPip
  • 58 posts

For me i donk welcome candle stick,am alwas confused with them i appreciat piechat the most to determind market movement and viceversa


but for some people its the easiest chart to learn
just like me
  • 0

#4
heartboy23

heartboy23

    Member

  • Members
  • PipPip
  • 45 posts
I like to learn from skilled people. Thanks for your guide my friend
  • 0

#5
ganthiraj

ganthiraj

    Advanced Member

  • Members
  • PipPipPip
  • 135 posts
i have checked some candle pattern formulas and sone does not work,

there come a message "formula error" or after Test formula comes a message "value false"

These formulas doesnt work:

Engulfing
(O1>C1)AND(C>O)AND(C>=O1)AND(C1>=O)AND((C-L)/(.001+(H-L))>0.6)AND(ABS(O1-C1)<ABS(C-O)*.5)
*Sort in ascending order*


Hammer/Dragonfly Doji
(H-L)>(3*abs(O-C))AND((C-L)/(.001+(H-L))>0.8)AND(O-L)/((.001+(H-L))>0.8)
*Sort in ascending order*


Harami Cross
ABS(C1-O1)>(H1-L1)*0.50 AND
C1<O1 AND
H<O1 AND
L>C1 AND
(((C+O)/2)-L) > (H-L)*0.40 AND
(((C+O)/2)-L) < (H-L)*0.60 AND
ABS(C-O) < (H-L)*0.20
*Sort in ascending order*


Dark Cloud Cover
ABS(C1-O1)>(H1-L1)*0.50 AND
C1>O1 AND
O>H1 AND
C<((C1+O1)/2) AND
C>O1


ABS(C1-O1)>(H-L)*0.50 AND
C1>O1 AND
C<O AND
H<C1 AND
L>O1

I think most of the formulas does not work. I found the formulas on the link on your prior post
  • 0

#6
standart

standart

    Advanced Member

  • Members
  • PipPipPip
  • 4,800 posts
candlestick is one of good indicator to help trader make decision in trading. especially for trader who usually use high time frame as prefered chart. but because the material is many, impossible to trader learn and memorize it in short term time. patient is needed in order to master it and use it in real trading.
  • 0

#7
myregister

myregister

    Advanced Member

  • Member
  • PipPipPip
  • 6,976 posts

candlestick is one of good indicator to help trader make decision in trading. especially for trader who usually use high time frame as prefered chart. but because the material is many, impossible to trader learn and memorize it in short term time. patient is needed in order to master it and use it in real trading.

For technical traders i mean a trader who prefer to use technical analysis over fundamental analysis will prefer this as one of their technique. Candlestick also help us to see the real time movement of the market. It said by some of their followers that candlestick  can be use for determine the next after news trend.


  • 0

#8
silent192

silent192

    Newbie

  • Members
  • Pip
  • 7 posts

Candle sticks 4life :lol:


  • 0

#9
Sininfinity

Sininfinity

    Advanced Member

  • Moderators
  • 679 posts

For me i donk welcome candle stick,am alwas confused with them i appreciat piechat the most to determind market movement and viceversa

 

It totally got me confused. lol Where did the pie chart came from among the most common charts?


  • 0

#10
myregister

myregister

    Advanced Member

  • Member
  • PipPipPip
  • 6,976 posts

Candlestick without doubt change the way we trade in forex, especially with technical analysis and this strategy proven to be an accurate one with the ratio up to 70%. We can use candlestick chart to identify the market trend and to be an indicator when we want to take an opening position and the closing position(if we prefer cut the profit/loss manually).


  • 0

#11
sidejob

sidejob

    Advanced Member

  • Member
  • PipPipPip
  • 11,462 posts

I don't know where do you get that but i think it is quite accurate and also still there are a lot of traders around the world which still use this strategy despite what candlestick strategy lack. Candlestick analysis is a strategy which has been passed the test of time since its invention and its rediscovery and also applied not just in forex but in stock too.


  • 0

#12
myregister

myregister

    Advanced Member

  • Member
  • PipPipPip
  • 6,976 posts

I don't know where do you get that but i think it is quite accurate and also still there are a lot of traders around the world which still use this strategy despite what candlestick strategy lack. Candlestick analysis is a strategy which has been passed the test of time since its invention and its rediscovery and also applied not just in forex but in stock too.

It is an old strategy which has been proven by time isn't it? Since Edo Period to the Modern FX market. Candlestick also has overall good rate for making technial prediction, i don't really get the whole part how this work, i mean like when to use it but in calmer period you still can depend on candlestick, since that is a good and better strategy compared to the newest one.


  • 0

#13
sidejob

sidejob

    Advanced Member

  • Member
  • PipPipPip
  • 11,462 posts

Candlestick is just a tool for trader, because no matter what the trading candlestick is only indicator and the latest decision would be you as trader to decide when to open a position and to close it. Candlestick developed in japan but not for forex first, it is for rice trading or commodity trading.


  • 0

#14
myregister

myregister

    Advanced Member

  • Member
  • PipPipPip
  • 6,976 posts

Sure it is just a tool but this tool also applied in other high risk business, such as commodity based trading, localized trading even in the well known Stock. Yes, it developed by a well known japanese rice trader :D, so it is for commodity trading first but the effect on forex is not a joke and many traders whose depend on technical indicators love it.


  • 0

#15
sidejob

sidejob

    Advanced Member

  • Member
  • PipPipPip
  • 11,462 posts

This is why many traders love it because it has many variations, from the simple formation to the complex and more advanced formation. As for the result mostly traders who depend on candlestick to analyze the market said its rate up to 70%. I don't know if that is true but seeing they keep sticking with candlestick formations, it seems true.


  • 0

#16
myregister

myregister

    Advanced Member

  • Member
  • PipPipPip
  • 6,976 posts

This is why many traders love it because it has many variations, from the simple formation to the complex and more advanced formation. As for the result mostly traders who depend on candlestick to analyze the market said its rate up to 70%. I don't know if that is true but seeing they keep sticking with candlestick formations, it seems true.

I don't know how much rate is (or if forget to know about that). Candlestick is pretty good stuff, i in few times use it as an indicator that i should take a position right now or wait for a few minutes. Overall a good formations could give us further details of how the market would transform next.


  • 0