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One of the traders aids in developing methods of candlestick charts are the candlestick patterns. Candlestick patterns are valuable for making uncomplicated systems that will advise you regarding the evolution of a trend in order for you to commence trading.

Candlesticks have a structure that displays the open, high, low and closing price of a currency, stock or commodity over a time frame. The period covered is typically user selectable.

The customary time period is 5 minutes but you may desire in some situations to consume 15 minutes. For longer term trading you can choose longer periods.

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The body of the candle points the difference between the open and close prices. If it is white (or green/blue on a colored chart) the open is the lower boundary of the elliptical body and the price marked up during the period you are studying. If it is black (or red on a colored chart then the opening price is the top boundary and the price plummeted.

In candles, vertical lines pointing up from the top and down from the bottom are known as wicks. The top of the upper part of wick is the highest position that the price ever achieved during the period. The bottom of the lower wick is the low.

The boon of this kind of analysis is that the trader can right away see whether prices rose or fell over the period. Bear markets are signified by green or white candles whereas bull markets are signified by red or black candles.

Aside from this, the high and low relative to open and close prices are instantly evident. Then there is a solid candle minus a wick.

It’s called a Marubozu pattern. In this event the market prices never went lower or higher than their opening and closing stance.

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he high value as opening price and low value as closing price is designated by the red or black candle. If it is white or green, the opening rate was the low and the closing rate was the high.

A lengthened body means a relatively consistent movement either up or down. A reversal is determined by a long wick on the top or on the bottom.

In short, to ensure precise trend reading, candlestick must be read within the context of the preceding candlesticks. You then can continue to make more thorough candlestick patterns that will imply probable future trends.

Note: Currency trading is risky, may result in considerable losses, and is not appropriate for everyone.