How To Read The Chandlestik Nautical Chart - Iq Pick Strategy

Here's how to read candlestick charts:

In psychology, candles are formed because of the sales pressure level in addition to the impulse to buy. The departure inwards the amount of pressure level in addition to encouragement is what causes candlesticks to live unlike from each other.

Chronology of candlestick formation:

- When in that location are many buyers who brand purchases, the marketplace toll increases therefore that at the cease of the marketplace menstruum it closes inwards a higher house the opening price, lastly the Up candle (green) is formed.

- When many traders brand a sale, the marketplace toll drops further, therefore at the cease of the menstruum the marketplace closure is unremarkably below the opening price. This status causes the candle to shape cherry (down).

To produce upwards one's heed the management of the side yesteryear side candle, in that location are several things that must live considered.

1. Resistance

2. Slow downward rate

3. Flip direction

4. Convergent

1. Resistance

The shape of resistance is shown yesteryear the tail of the candle. When resistance is greater than dominance, in addition to then the political party that is the resistance is the 1 who wins in addition to in that location volition live a modify inwards marketplace dominance, therefore the tendency volition opposite direction. 

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2. Slowdown Candlestick

Trader's doubts to opened upwards a seat motility the marketplace to slow down. This doubtfulness arises because traders gauge the marketplace is likewise high, likewise low, saturated weather condition or the marketplace is inwards a zone of back upwards & resistance. With no traders opening positions, in that location is no unwrap energy to deed the market.

In this status nosotros must live laid to opened upwards a opposite position, because the marketplace volition live taken over yesteryear 1 of the parties.

3. Candlestick experiment opposite direction

In a saturated marketplace seat in that location volition live parties who assay to cease the tendency that is happening, who desire to opposite the management of a trend. But sometimes the job concern begins alongside a exam condition, which tests whether the marketplace tin laissez passer on notice live reversed or not. This is marked yesteryear a long candle tail that is opposite to the management of the tendency that is happening.

The beingness of a dorsum lawsuit of this management indicates that in that location volition live a opposite direction. So that inwards this status nosotros tin laissez passer on notice live prepared to opened upwards positions against the trend.

4. Convergent candlestick

Convergent weather condition of this candle tin laissez passer on notice also occur because in that location are sure enough parties who desire to become the best price, fifty-fifty though they already know the marketplace volition opposite direction, only yet pulling it higher or lower offset to become a amend price, in addition to then the marketplace is reversed point.

In weather condition similar this, nosotros run across the indicator, if the indicator states convergence too, in addition to then nosotros tin laissez passer on notice opened upwards a seat that is opposite to the tendency that occurs.

Those are unopen to things that must live known from the candlesticks to produce upwards one's heed the side yesteryear side candlestick.

below is a video on how to read candles in addition to the dominant colors.