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On 20-Jul-98, Terry Chadban wrote:
> I don't fully understand them at the moment, but I am trying to learn more
> about them - a brief explanation of candlesticks
OK, very briefly, Terry:
The coloured part of a candlestick is called the "real body".
The lines above/below the real body are the "wicks" or tails, etc.
Size is relative to the neighbouring candles.
- white bodies are rising prices (OPEN is low, CLOSE is high)
- black bodies are falling prices (OPEN is high, CLOSE is low)
- body size represents the strength of a move
- big bodies represent strength or conviction of bulls *or* bears
- small bodies represent weakness or indecision *between*
the bulls and bears
- tails indicate weakness in their direction
- windows (gaps, no overlapping prices) indicate strength of a move
- continuation of a trend re-inforces the trend
- reversals (including consolidation) break down a trend
Pattern recognition is a different aspect, so read one of the good books
I mentioned earlier.
---===///||| Donald Dalley |||\\\===---
The World of AmiBroker Support
http://webhome.idirect.com/~ddalley
ddalley@xxxx
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