We will talk in this article about Japanese use of candles in technical analysis in the Forex Trading market or Forex. And will take place in the history of candles and their origin, this is in addition to the reasons why a lot of traders in the forex used in technical analysis, and eventually we'll autopsy candle and explain their parts in detail, Valhimh Japanese per hide with it many of the important information about the market, trends, and facilitates the ability to predict Currency prices in the currency trading market.
A Brief History of patterns through the Japanese candles
Planning candles grew up in Japan during the eighteenth century in Japan. Where there is no standard definition of the currency in Japan, as is the case in these days, but was then trading is done through rice. The filing is through the development of rice in the warehouses, and given the depositor deposit slip due to his work, and then it is either the sale or exchange of receipt vouchers, making the futures market for the first rice futures market in the world. He learned one of the merchants prominent in Japan all things related to market rice futures, and began to seize opportunities in the sale of coupons when prices are high and buy when prices fall and this is called merchant Houma Monhia, has owned Houma after studying in-depth ability to anticipate the movement of rice market crowded It was built as a result of know this is a very enormous wealth. It was one of the most important techniques developed by the candlestick is a technique which has the Japanese technical analysts use when the Japanese stock market began in 1870 and is still the technique used by technical analysts frequently are the most popular way among analysts in technical analysis.
Why use candlestick day traders in technical analysis?
First, because the candlestick in the chart provides the most detailed representation of the movement and accurate price.
Secondly, the candlestick chart provides a clear view of both supply and demand and determine the winner in the battle between bulls and bears.
Third, candles reveal another dimension to the price movement in a given period and show the power behind every movement of prices.
Anatomy of Japanese candle in the graph
The candle per gathered much information, and thus facilitate the process of reading the market at the time intraday, which increases the ability of the merchant to read the market and seize opportunities, each candle contains the tail loft represents the highest price in a certain period of time you choose your own and contain the candle on the tail underside represents the lowest price During the same period that you choose, but for the central part of the candle shows the distance between the opening price and the closing price. This is known as the region as the candle body, either side top of the candle represents the closing price in the case of boarding, the opening in the case of landing, but for the rib bottom represents the opening price in the case of the ups and closing price in the case of landing and for the period of time that you have chosen, whether minute, hour Day, ...... etc..
Summary candlestick in Forex
The fee candlestick provides more life to the price movement in the graph more than what we can offer the tape normal, and of course, there are several types of candles, which can often cause confusion, especially for traders newborn circulation, so the traders beginners learn to read this candles during Learn Forex. The Japanese candles represent a useful summary of the price movements in the forex trading market. As we said earlier, the single candle contains many of the important information that summarizes the dealer market situation in the time period chosen by himself.
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