Within one hour, the opening price is the price of the currency pair at the time of opening each candlestick.During this period, a candle takes an hour to mature.
Suppose that when a candlestick is open in a one-hour chart, the price is 1.9825. This is the opening price. The price goes up and down for an hour and finally, if one hour ends, the price is 2.0080. This is the price nearby.
If the closing price is higher than the open price, the candlestick is bullish. This means that the price has increased when creating the candelabrum.If the closing price is lower than the open price, the formed candlestick patterns is bearish.
This means that the price has dropped during the making of candles.
The high price is the maximum price and the low price is the minimum price, during the candle formation in this particular period of time.
Differences between bullish and bearish Japanese candlesticks The shape and color of a candlestick can change several times during its creation.
Therefore, you must wait until the candle holder is fully formed.
Then you read the candle sign and do your analysis and make a decision.
Candles have two main parts:
Candlestick body and shadow
The psychology of the market
The exchange of candles means knowing the psychology of markets through the shapes and colors of candles.
Candles are indicators of market psychology.
They show us if there are more purchases than sales, or if there are more fears in the market than greed and vice versa.
With this information, you can predict the direction of the next price.It is the shape of the chandeliers that reflects the psychology of the markets.
Due to price changes, candles can take different forms.
For example, the opening and closing prices may be the same.
Or the high price may be the same as the price nearby.
Let’s see how many candelabra can have different shapes:
In this case, the four prices are different from each other.A typical candlestick can be bullish or bearish.