Community Forex Questions
What are important values in a candlestick?
Open price:
The initial price traded during the creation of the new candle is represented by the open price. If the price begins to rise, the candle will turn green or blue (colors vary depending on chart settings). If the price falls, the candle will turn red.
High Price:
The top of the upper wick/shadow represents the highest price transacted during the period. If there was no upper wick or shadow, the open or close price was the highest price transacted.
Low Price:
If no lower wick or shadow exists, the lowest price traded is equal to the closing or open price of a bullish candle, or it is the price at the bottom of the lower wick.
Close Price:
The closing price is the final transaction that occurred during the candle creation phase. Most charting software will automatically turn the candle red if the close price is lower than the open price. If the close price is greater than the open price, the candle will be green or blue (also depends on the chart settings).
The Wick:
The wick, also known as a "shadow," is the next most important component of a candlestick. These details are important because they show the price extremes for a specific charting period. The wicks are easily distinguished because they appear to be thinner than the body of the candlestick. The durability of candlesticks is revealed here. Traders can use candlesticks to help them focus on market movement rather than static price extremes.
Direction:
The color of the candlestick indicates the direction of the price. If the candle's final price is greater than its starting price, the price is rising and the candle will be green (the color of the candle depends on the chart settings). If the candle is red, the price is closed below the open.
Range:
The range of a candle is the difference between its highest and lowest price. Subtract the price at the bottom of the lower wick from the price at the top of the upper wick to get this. (The range is equal to the highest point minus the lowest point.)
The initial price traded during the creation of the new candle is represented by the open price. If the price begins to rise, the candle will turn green or blue (colors vary depending on chart settings). If the price falls, the candle will turn red.
High Price:
The top of the upper wick/shadow represents the highest price transacted during the period. If there was no upper wick or shadow, the open or close price was the highest price transacted.
Low Price:
If no lower wick or shadow exists, the lowest price traded is equal to the closing or open price of a bullish candle, or it is the price at the bottom of the lower wick.
Close Price:
The closing price is the final transaction that occurred during the candle creation phase. Most charting software will automatically turn the candle red if the close price is lower than the open price. If the close price is greater than the open price, the candle will be green or blue (also depends on the chart settings).
The Wick:
The wick, also known as a "shadow," is the next most important component of a candlestick. These details are important because they show the price extremes for a specific charting period. The wicks are easily distinguished because they appear to be thinner than the body of the candlestick. The durability of candlesticks is revealed here. Traders can use candlesticks to help them focus on market movement rather than static price extremes.
Direction:
The color of the candlestick indicates the direction of the price. If the candle's final price is greater than its starting price, the price is rising and the candle will be green (the color of the candle depends on the chart settings). If the candle is red, the price is closed below the open.
Range:
The range of a candle is the difference between its highest and lowest price. Subtract the price at the bottom of the lower wick from the price at the top of the upper wick to get this. (The range is equal to the highest point minus the lowest point.)
Aug 23, 2022 07:21