Trading currencies on the global market is a great way to diversify your investment strategy. This market is open five days a week for 24 hours, which allows great flexibility to those who don’t intend to trade as a full-time job. Like other financial markets, there a technical parameters and analysis that can help you trade profitably. Understanding the candlesticks and charts that utilize them is one of those analysis that you should master. It will enable you to spot the patterns easily.
- The candle body – the difference between the opening and closing price – is set against a line showing the time period’s high and low.
- After a long downward or upward trend, unusually long candles suggest a reversal is coming.
- Some common patterns are recognizable to traders, such as the Hammer, the Master, and the Hanging Man.
“if the Forex candle body is black, as shown above, or red, then the closing price is lower than the opening price”
Read more: https://admiralmarkets.com/education/articles/forex-basics/everything-you-need-to-know-about-candlestick-trading
Leave a Reply