Analyze the movement of the candlestick is something that should be done by every trader. Candlestick is a basic tool for analysis that must be understood by the trader. many novice traders who do not pay attention to this. they are more likely to pay attention to the indicators but no candlestick. This is often the case because a lot of books and reading in forums that discuss about the indicator.
Now I am going to share with you about how I read and analyze each candlestick formed in the chart. trust me this is a very fun job, and not as difficult as you think. If you are accustomed then I am sure you will find something of interest while trading. trading is difficult then make as easy as possible. You have to understand a little note below, so that you have the same understanding with me:
"The transfer or displacement requires that the name of motion and process, and the process takes time. In a transfer we will recognize the presence of the starting point and end point. The distance between the starting point and end point we refer to as displacement. Well in the candlestick, the open price can be compared as a starting point and close prices we consider to be the end point of the time while it is the timeframe that we use."
For example, if we look at the candlestick moving away from the starting point (opening price) and the ending is far from the starting point (the closing price) then we know that the price has moved far enough.
So if the high price moves up or down from the starting point but if the price eventually ends at the starting point again, the actual costs will not be moving anywhere. Price is moving because it is the way it is but it does not shift. So if the price moves away from its starting point, but ended up back at the starting point... it means futile effort. Price is said to move if he shifted from the starting point. I think this is the basic thing that very rarely people would notice.
Knowing this basis will facilitate you to read each candlestick without having to memorize a pattern such as Harami, shooting star, hammer etc.. because the names were just a name, but the point is on how you understand it.
Now I am going to share with you about how I read and analyze each candlestick formed in the chart. trust me this is a very fun job, and not as difficult as you think. If you are accustomed then I am sure you will find something of interest while trading. trading is difficult then make as easy as possible. You have to understand a little note below, so that you have the same understanding with me:
"The transfer or displacement requires that the name of motion and process, and the process takes time. In a transfer we will recognize the presence of the starting point and end point. The distance between the starting point and end point we refer to as displacement. Well in the candlestick, the open price can be compared as a starting point and close prices we consider to be the end point of the time while it is the timeframe that we use."
For example, if we look at the candlestick moving away from the starting point (opening price) and the ending is far from the starting point (the closing price) then we know that the price has moved far enough.
So if the high price moves up or down from the starting point but if the price eventually ends at the starting point again, the actual costs will not be moving anywhere. Price is moving because it is the way it is but it does not shift. So if the price moves away from its starting point, but ended up back at the starting point... it means futile effort. Price is said to move if he shifted from the starting point. I think this is the basic thing that very rarely people would notice.
Knowing this basis will facilitate you to read each candlestick without having to memorize a pattern such as Harami, shooting star, hammer etc.. because the names were just a name, but the point is on how you understand it.
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