“He who speaks without modesty will find it difficult to make his words good.”
To form a candlestick , you need the datas of the opening price, highest price, lowest price, and closing price. All of these datas will form a candle and guide you to analyze the level of trader psychologies.
This part will discuss about :
a. Candlestick formation
b. Long real body and short real body
c. Long shadow and short shadow
d. Marubozu
1. Candlestick Formations
At candlestick charts you will often find the white and black candle, Do you know that white and black candle have their own meanings ?
1. White Candle mean that buyers have more power to dominate the sellers at that periods.
2. Black Candle mean that sellers have more power to dominate the buyers at that periods.This part will discuss about :
a. Candlestick formation
b. Long real body and short real body
c. Long shadow and short shadow
d. Marubozu
1. Candlestick Formations
At candlestick charts you will often find the white and black candle, Do you know that white and black candle have their own meanings ?
1. White Candle mean that buyers have more power to dominate the sellers at that periods.If the closing price above the opening price, the candle will form a white candle mean buyers dominate sellers and if the closing price below the opening price , the candle will form black candle mean sellers dominate buyers at that time.
The range between the opening and closing price or the part of candle that has white and black color is called real body, whereas the thin line above and below the real body is called shadow, this shadow regard as the higher or lower of the price at that period.
2. Long real body and short real body
Generally the longer the real body, indicates the more power of traders to buy and sell in the market. whereas the shorter the body, indicates the less power of trader to buy or sell in the market.
White candlestick with long body show there is a strong power of buyers to raise the price. White candlestick with long body indicates the reversal might be happened, but you have to notice the position of the price.
Black candle with long body show there is a strong power of sellers to decline the price. Black candle with long body indicates the reversal from bullish to bearish might be happened but you have to notice the position of the price.
Real body with shorter candle, indicates there is less power of buyers and sellers to trade in the market , it also indicates there is an indecision in market.
White and black candle in the market show there is an indecision and there might be a change of the trend, so be careful . ^_^
3. Long and Short Shadow
Shadow at below and above the real body will give you useful information at every trading session. Upper shadow represent the highest price and lower shadow represent the lowest price at every session.
Candlestick with short shadow indicates the price only move around the opening and closing price at that period.
Candlestick with long shadow indicates the price leaving far away the opening and closing price at that period.
Candlestick with long shadow at upper real body and short shadow at below the real body indicate at the beginning session the the buyers dominate the market, but the sellers start pushing it down from it highest price and as the result the the closing form a long shadow above the real body.
Candlestick with long at below real body and short shadow at above the real body indicate at the beginning session the the sellers dominate the market, but the buyers start pushing it up from it lowest price and as the result the the closing form a long shadow below the real body.
4. Marubozu
marubozu is the full candle with long real body and there is no shadow below or above the real body.
Marubozu with white candle indicates the buyer have strong power to dominate the trading for that session.
Marubozu with black candle indicates the sellers have strong power to dominate the trading for that session.
Closing marubozu is the marubozu with no shadow at the closing level. A white body will not have a shadow at the top, and the black candle will not have a shadow at the bottom.
Opening marubozu is the marubozu with no shadow at the opening level. The white body will not have a shadow at bottom and the black body will not have shadow at the upper real body. These are strong signals but they are not strong as the opening marubozu.
The range between the opening and closing price or the part of candle that has white and black color is called real body, whereas the thin line above and below the real body is called shadow, this shadow regard as the higher or lower of the price at that period.
2. Long real body and short real body
Generally the longer the real body, indicates the more power of traders to buy and sell in the market. whereas the shorter the body, indicates the less power of trader to buy or sell in the market.
White candlestick with long body show there is a strong power of buyers to raise the price. White candlestick with long body indicates the reversal might be happened, but you have to notice the position of the price.Black candle with long body show there is a strong power of sellers to decline the price. Black candle with long body indicates the reversal from bullish to bearish might be happened but you have to notice the position of the price.
Real body with shorter candle, indicates there is less power of buyers and sellers to trade in the market , it also indicates there is an indecision in market.
White and black candle in the market show there is an indecision and there might be a change of the trend, so be careful . ^_^
3. Long and Short Shadow
Shadow at below and above the real body will give you useful information at every trading session. Upper shadow represent the highest price and lower shadow represent the lowest price at every session.
Candlestick with short shadow indicates the price only move around the opening and closing price at that period.Candlestick with long shadow indicates the price leaving far away the opening and closing price at that period.
Candlestick with long shadow at upper real body and short shadow at below the real body indicate at the beginning session the the buyers dominate the market, but the sellers start pushing it down from it highest price and as the result the the closing form a long shadow above the real body.
Candlestick with long at below real body and short shadow at above the real body indicate at the beginning session the the sellers dominate the market, but the buyers start pushing it up from it lowest price and as the result the the closing form a long shadow below the real body.
4. Marubozu
marubozu is the full candle with long real body and there is no shadow below or above the real body.
Marubozu with white candle indicates the buyer have strong power to dominate the trading for that session.
Marubozu with black candle indicates the sellers have strong power to dominate the trading for that session.
Closing marubozu is the marubozu with no shadow at the closing level. A white body will not have a shadow at the top, and the black candle will not have a shadow at the bottom.
Opening marubozu is the marubozu with no shadow at the opening level. The white body will not have a shadow at bottom and the black body will not have shadow at the upper real body. These are strong signals but they are not strong as the opening marubozu.
Tidak ada komentar:
Posting Komentar