Amiga Anywhere

Understanding how to read candlestick charts is needed for both stock trading and foreign fx trading. Many traders may be able to develop worthwhile trading systems virtually entirely on the supposition of candlestick charts, and many more systems depend on them as a first or first signal. These can be prices of anything: stocks, commodities, currencies or whatever. The open and close prices could be the prices for a day’s trading but usually you have command over the period and you can set your chart to show a candle for each hour, for 5 minutes or whatever. If you are planning systems around this type of chart you will doubtless need to test your signals over more than one period of time before you open a trade.

If shown in monochrome, the candle will be unshaded or white for a fee that rose during the period. If the price slipped in the period, the body of the candle will be shaded, either black or a color. In this example naturally the higher edge of the body is the open price and the lower edge is the close. The low during the period is the base of the vertical line or wick running down from the base of the block. Some charts nowadays are shown in two colors.