Forex GOLD market Forecast & UPDATE 2-22-2010

Teaching the fundamentals of Candlesticks and how they could be used to enhance your trading activity Japanese Candlesticks are a method of following market price action and identifying market reversal points and trends. Some people have tried to trivialize the technique - but I believe the more you know about them, the better you will become at trading with them. I explain it like learning a language. If you only learn five words - you won't be able to speak and understand the language well - right? If you learn to speak and understand the entire language base, then you will be fluent in it - and thus be able to use it more effectively.

Compared to traditional bar charts, many traders consider candlestick charts more visually appealing and easier to interpret. Each candlestick provides an easy-to-decipher picture of price action. Immediately a trader can see compare the relationship between the open and close as well as the high and low. The relationship between the open and close is considered vital information and forms the essence of candlesticks. Hollow candlesticks, where the close is greater than the open, indicate buying pressure. Filled candlesticks, where the close is less than the open, indicate selling pressure.

Category:

Education

Tags:

• CANDLESTICK PATTERNS
• CANDLESTICK CHARTS
• GOLD
• FOREX
• MARKET FORECAST