- 27 Kas 2020
- Tepkime puanı
Introduction to Candlesticks
The Japanese began using technical analysis to trade rice in the 17th century. While this first version of technical analysis was different from the US version launched by Charles Dow in the 1900s, many of the guiding principles were very similar:
"What" (price action) is more important than "why" (news, earnings, etc.).
All known information is reflected in the price.
Buyers and sellers move markets according to expectations and emotions (fear and greed).
Actual price may not reflect the underlying value.
According to Steve Nison, the candlestick chart first appeared after 1850. Most of the credit for the candlestick development and schedule goes to a legendary rice merchant named Homma from the town of Sakata. It is likely that his original ideas were modified and refined in years of trade and ultimately resulted in the candlestick chart system we use today.
To create a candlestick chart, you must have a dataset of open, high, low, and close values for each period you want to view. The hollow or solid part of the candlestick is called the "body" (also called the "real body"). The long thin lines on the top and bottom of the trunk represent the high / low range and are called "shadows" (also called "wicks" and "tails"). The high is marked by the top of the top shade and the low by the bottom of the bottom shade. If the stock closes higher than the opening price, a hollow candlestick is drawn with the lower part of the body representing the opening price and the upper part of the body representing the closing price. If the stock closes lower than the opening price,
Compared to traditional bar charts, many traders find candlestick charts more visually appealing and easier to interpret. Each candlestick provides a simple, visually appealing picture of price action; A trader can instantly compare the relationship between open and close and high and low. The relationship between the opening and closing is considered vital knowledge and forms the core of the candlesticks. Hollow candlesticks, where the closing is greater than the opening, indicates buying pressure. Full candlesticks where closing is less than opening indicate selling pressure.