The construction of candlesticks Reading the chart

The construction of candlesticks; Reading the chart
Candlestick construction is one of the most basic things that a trader ought to understand in any forex, indices or stock trading chart. It forms the basis of understanding how the market is behaving.

The construction of a candlestick depends on the timeframe that the trader is sing to trade. For example, if a trader uses a 5 minute time frame chart to trade, every candlestick that is formed is constructed within 5 minutes (the formation of the candlestick begins at the start of every 5 minute and end when a time lapse of five minutes passes).

Therefore, the pattern formed by the candlesticks also depend on the timeframe chart that the trader is using. The market price trend of a tight timeframe may not be the same as to that of a large timeframe. When the two matches, then the trader should be very confident to place his trade since the trend is strong.

The philosophy of candle pattern identification