Candlestick Trading Result
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Candlestick graphs are short term trading tools.
These tools are used for only short-term uses as they don’t count trend and support while doing any result.
For this reason, candlesticks can only be used effectively in entry and then they have to be combined with support and trend.
To get the most useful results, one has to use candlesticks in support resistance
and also at entering into small pullbacks in the bigger trend.
The first thing which is important is to know how the candlestick graph works.
The upper shadow of the candlestick graph shows the highest price
whereas at the top of the real body, you will see the opening price for a red
candlestick and for a green candlestick that will be the closing price.
The question arises to people’s mind is why the candlesticks are red and green.
If the body of the candlestick is red that means the close is lower than the open.
The body is shown green when the open is below the close.
In red candlesticks the bottom is the closing price and in green candlesticks,
the lowest price is the lower shadow.
The candlesticks signs are mostly hammer, the hanging man,
the gravestone Doji, the Doji star, dark cloud cover, harami etc.
These are commonly used by buyers to decide when to buy or sell the share.
The hammer is the best sign to show “Buy” sign to the buyers while the hanging man sign,
which is quite close to hammer sign is used as “Sell” sign for the traders.
It is up to the buyers how they follow the signs and decide accordingly.
A wrong move can be dangerous for their trading.
By knowing the simple candlesticks graph result tricks,
traders can easily decide their next move and have safe trading experience.