using candlesticks in forex

both ends of a candlestick are called shadows, and they show the entire range of price action for the day, from low to high. Each candlestick usually represents one days worth of price data about a stock. ( pdvw ) shows the Three White Soldiers pattern.

Aroon Oscillator line below zero a bearish market. Soon thereafter, the buying pressure pushes the price up halfway or more (preferably two-thirds of the way) into the real body of the black candle. Note how the reversal in downtrend is confirmed by the sharp increase in the trading volume. Over time, the candlesticks group into recognizable patterns that investors can use to make buying and selling decisions. Patterns form over a period of one to four weeks and are a source of valuable insight into a stocks future price action. Each candlestick represents one days worth of price data about a stock through four pieces of information: the opening price, the closing price, the high price, and the low price. A candlestick always must be analyzed in the context of what has happened in the past. The pattern consists of three candles: one short-bodied candle (called a doji or a spinning top) between a preceding long black candle and a succeeding long white one. Learn how to understand how buyers and sellers push price, who is in control and who is losing control.