candlestick charts

[olweiser]

Hi All,

using the candlestick chart (seems to be a popular choice) what do the little thin lines represent coming out of each long or short bar?

 

[Magos]

Hi All,

using the candlestick chart (seems to be a popular choice) what do the little thin lines represent coming out of each long or short bar?

Structure of a Candlestick

High: Highest traded price
Upper Shadow: Price traded above the close price
Close: Last traded price
Real Body: Is the traded range between the open and the close
Open: Is the first traded price
Lower Shadow: Price traded below the open price
Low: Lowest traded price


thin lines are the above in bold

 

[Rhody Trader]

High: Highest traded price
Upper Shadow: Price traded above the close price
Close: Last traded price
Real Body: Is the traded range between the open and the close
Open: Is the first traded price
Lower Shadow: Price traded below the open price
Low: Lowest traded price

This definition only applied to postive candles. For negative ones replace "open" for "close in the Upper Shadow and "close" for "open" in the Lower Shadow.

 

[Magos]

This definition only applied to postive candles. For negative ones replace "open" for "close in the Upper Shadow and "close" for "open" in the Lower Shadow.

I thought that was self-explanatory


if we continue like this, in the future we will trade for them as well

 

[olweiser]

Thanks both,
Magos, who's 'them'?

 

[Magos]

Thanks both,
Magos, who's 'them'?

I mean all the new people getting into trading, thats a joke

no worries man, anything you need just ask will be really happy to help

 

[olweiser]

candlesticks - not gettin' it

Sorry, I dont follow this explantion - perhaps it's my custom candlesticks.

I've added an attachment here, (hopefully) maybe someone can explain based on this diagram better.

Much appreciated.

p.s Magos, the explanation you gave above - is that from a site you could give me the url to?

 

[Magos]

Sorry, I dont follow this explantion - perhaps it's my custom candlesticks.

I've added an attachment here, (hopefully) maybe someone can explain based on this diagram better.

Much appreciated.

p.s Magos, the explanation you gave above - is that from a site you could give me the url to?

Its from my own presentation and also is basic TA (Technical Analysis)


Check this link, it will help alot
Candlestick

 

[olweiser]

Thanks Magos, I've read the explanation. Can we talk about this further....

1. open or closing indicator - but it opens monday and closes friday? i dont get it.
2. body is black/red if stock closes lower - lower than what?

so if we see a thin part (lowest trade of the 'day so far!') quite long in an upward trend and the body is only small but then another thin line at the top of it thats quite long...what does that mean?

 

[Claudia123]

Olweiser - have a look at heiken-ashi - same as candlesticks but easier to spot a trend with. Search on this site or google.

 

[dr.blix]

i'm in the same boat with candlesticks, there's a good thread on here with really useful web-sites/software links...there are a couple of links for tech analysis explanations on there.

maybe pick up a book about tech analysis to get the basics olweiser?

i know how hard it is starting out...i'm just starting myself. i find it works best getting some basic knowledge from books, then getting help filling in the blanks.

 

[olweiser]

I use OANDA and I can choose Heiken-Ashi as well - so very happy with that. Gotta say it dont look much different from candle. I'll look up its definitions later.

Dr.Blix, Thanks for the advice I think I will read some books that are more specific to the ones I have been reading.

 

[Magos]

Thanks Magos, I've read the explanation. Can we talk about this further....

1. open or closing indicator - but it opens monday and closes friday? i dont get it.
2. body is black/red if stock closes lower - lower than what?

so if we see a thin part (lowest trade of the 'day so far!') quite long in an upward trend and the body is only small but then another thin line at the top of it thats quite long...what does that mean?

I will try to make it as simple as possible

1. open or closing indicator - but it opens monday and closes friday? i dont get it.

It depends how you set up your chart platform.
-If it is set to M1: meaning 1 minute, it shows the price open/close/high/low of that particular minute.
-if it is set to D1: meaning 1 day, it shows it shows the price open/close/high/low of that particular day.


2. body is black/red if stock closes lower - lower than what?

lots of people use different color scheme. I personally use green and red. Green for me is a positive candle stick and red is a negative candle stick.

Imagine two candle sticks.
First one open at 1 and closes at 2
The second opens at 3 and closes at 4

Therefore it indicates a running market (going up) the second candlestick will be green and also the first will be green since it opened at 1 and closed at 2.

If the second was to open at 1.5 and close at 1 it would have been a red candle stick.


Hope all the above help

 

[olweiser]

Thanks Magos, that does help.

I found this useful resource that has made me see just how complex but also powerful candlesticks are:
Candlestick Charts and Candlestick Patterns Explained | IQ Chart

 

[Magos]

Thanks Magos, that does help.

I found this useful resource that has made me see just how complex but also powerful candlesticks are:
Candlestick Charts and Candlestick Patterns Explained | IQ Chart

I am going to store it in my education folder... maybe I will use it someday in my Thesis you never know. any probs just ask would be happy to help

 

[olweiser]

what generally considered best for looking at a chart in terms of timescales?
At the moment I'm using 1 hour readings so I can see a full weeks charting on the screen.
I can change this to 5 seconds, but it seems a little stressful to follow.

 

[Magos]

what generally considered best for looking at a chart in terms of timescales?
At the moment I'm using 1 hour readings so I can see a full weeks charting on the screen.
I can change this to 5 seconds, but it seems a little stressful to follow.

what are you trading ????

 

[olweiser]

on the forex, using candles.

 

[Magos]

on the forex, using candles.

on fx i use 5 min charts and daily to do my trend channels

 

[Claudia123]

i use 1 min charts on fx for entry/exit - 1 hour chart to see the trend.