Who said that trade in the foreign exchange market - employment boring, devoid of any imagination, and is subject only to the rules of strict pragmatic, no place for romance and sentimentality?And yet, one of these methods of technical analysis that you can apply the word "romantic" are certainly candlestick trading.
widespread view that the candlestick is very similar to the bars, is nothing more than a delusion.Rather - bars that look like candlesticks, because they were used much later, and they are created on the basis of candles.Moreover, even before the forex candlestick used for centuries.And all because they enable a maximum accuracy the movement of prices on the chart, and no matter in what time period they are used.Candles were invented in VIII century Munehisa Homme - rice trader from the Japanese port city of Sakata, who succeeded so much that for his services was hired by the emperor as a financial adviser and has received the honorary title of samurai.As they say, a lot of rice under the bridge since then, but still when trading on any exchange used candlesticks.Forex - is no exception.
In order to build a candle, you must know the four values of the price for a specific time interval (from minutes to years) - namely, the opening and closing prices (open and close), as well as the maximum and minimum values (high and low).Closing prices and the opening of the body of the candle is formed, and the thin line (maximum and minimum) - its shadow.If the closing price is higher than the opening price - Forex candlesticks are white, if the opposite - that black.However, before the return of white used red, but, by and large, it is absolutely of no importance, since the current software used in stock trading, allows you to select any color.The main thing that candles Forex correctly display rising or falling market, without merging with the background color.
itself a separate candle does not mean anything.Of particular value are different candlestick combination (of two or more candles).And here the Japanese would not be Japanese if it had not come up in candlestick analysis of the set of colorful and exotic terms (hanged incident or the morning star, the hammer thrown the baby, pregnant, skylight in the clouds capturing the belt, etc.).As a rule, all these names are based on a graphical representation of all possible combinations, multiplied by the traditional Japanese philosophy.
It should be noted that the method of candlestick analysis there are both its supporters and opponents.Even some experienced traders and analysts reject Candlestick Forex, considering them the combination is too complex and confusing, complicating the timely adoption of correct decisions regarding the opening or closing position.In any case, in order to trade in the foreign exchange market has been successful, technical analysis initially involves the integrated use of all available indicators.
