Djia Chart

It is difficult to believe that Japanese candlestick charts have been almost totally unknown in the West, before being introduced in 1989 by an American named Steve Nison in his book Japanese Candle Charting Techniques. These techniques are now so widely used in the financial industry, it is difficult to imagine a world without them. What is unique is that the simple form candle can contain as much information, but because it is graphically displayed and colored it allows the mind to absorb information very quickly. Combined with our knowledge of the volume, they provide the two elements that form the basis of your discussions. As you probably guessed, they are called candles or candlesticks, because that is what they look like!

Each chandelier has four elements as follows, namely an opening price, a low price, high price and a closing price within the time envisaged. When the price closed higher in the period of time, then they are usually blue, and the price has closed its doors, they are usually shown as red. The reason they are so powerful because they show instantly and visually price changes over time. As you will see later, all aspects of the candle are important, especially body size, the length of the lock (top and bottom) and of course it is up or down a candle .

Now that you understand the basic training of a chandelier, I will discuss in more detail a little time. It may surprise you to know that on my cards I exchange currency at the following times: 5 seconds, 10 seconds, 30 seconds, 1 minute, 5 min, 10 min, 15 min, 30 min and in- Beyond the monthly magazine. The reason I mention it now is first to inform you that you can get maps chandelier in almost any time you like (all packages are slightly different mapping), and Secondly, if you're not careful, you spend your time as a lost soul touching endless time between trying to watch for the confirmation of something you saw in another calendar!. Do not worry, everyone has the same problem when they start, it is part of human nature! Each form of business has different requirements and in addition it also depends on the length of time that you hold open positions. I'll try to give a silly example, which hopefully will make the point.

As I mentioned above, take the 5 cards second example. Imagine that you are buying shares as part of your portfolio for years to come. You would not base your decision on a graph you 5 seconds! (No you would not! - You would not really) the timing of your participation and timing of the map you are looking at are completely out of balance with each other. You look years daily, weekly or even monthly list dating back several. Deadlines are relevant to the other and you must base your decision on an appropriate schedule for the time you probably maintain trade.

Now look at another job using the table 5 seconds. In currency trading you have people who trade in what is called scalping. In currency markets, prices move constantly, and sometimes very quickly. Within seconds, a price can be moved several points. A scalper will trade large amounts of money to small movements, trading and market hundreds of times per day. There is little point looking at a painting or daily schedule. Trading would be finished when you pushed the button. A silly example I know, but I hope you get the point. Scalpers would not use anything between 10 seconds and 5 minutes, and in case you're wondering, no, I'm not a scalper I never watch those deadlines. My trades are more long-term hours, days and sometimes weeks, so I used hourly and daily charts of 95% of the time (.