CandleStick Charts

Candlestick charts were created centuries ago in Japan in order to track changes in the price of their once most traded commodity: rice. Since then, the candlestick chart has been utilized by traders all over the world in order to more completely and more succinctly track price changes in just about every asset that is traded on a global basis. Candlestick charts are able to convey more information in a smaller space than any other type of chart that has yet been invented. You can use these charts to help you with your binary options trading after just a little study.

Understanding candlestick charts – Basics on How To Read Candlestick Charts:

A basic candle stick chart.


A candlestick chart shows the opening and closing prices for a session, plus the high, low, and range. A group of candlesticks placed together in a single chart can show you not only individual sessions of trading, but also how those sessions interrelate to each other. There are many different patterns that traders use to help predict future price changes, but the main idea is that trading is a beast that is controlled by human psychology. When patterns appear, traders will react in a certain way, thus making candlestick charts an overall accurate method at predicting future prices.

Green candles mean the asset closes higher than it opens. Red candles mean the asset closes lower than it opens.


How to use a candlestick chart:

The bars represent the open and close of the asset.


Bearish candles open at the top and close at the bottom.


The Wicks or Tails represent the highest or lowest price an asset sold for during that candle.

Using a candlestick chart is not difficult, as many people expect them to be. They are color coded so that you can more accurately determine whether a trading session was profitable or not with just a single glance. By learning the patterns that have become universally accepted as predictive tools, you can use candlestick charts to effectively predict where prices will go, on any level of trading. These charts can be used for any asset and any timeframe. Day traders can look at minute by minute trading sessions while investors can look at daily or even weekly sessions to help them better understand market patterns.

Candlestick charts and binary options traders:
Binary options traders use candlestick charts to help them determine if the price of their underlying asset will increase or decrease over the stated life of a trade. Because candlestick charts are typically more thorough than other charts, these are a crucial weapon within the arsenal of any binary options trader. They make understanding trends a much quicker process and as such, are effective at predicting prices.

For binary options traders, especially short term traders, the candlestick chart is a necessity. By understanding these charts and learning the patterns that are most effective at price predictions, you can become more profitable with your options trading.

Where To Get A Candle Stick Chart

There are plenty of sites where you can get charting software like candle stick charts. As a matter of fact, there are too many to review! Most traders use something like MetaTrader 4 or “MT4″. The screen shots above come from freestockcharts.com. You just have to click on settings > plot style > CandleStick

9 Responses to CandleStick Charts

  1. Olasubomi says:

    where can i read about candlestick in full

  2. Petet says:

    Great start, unfinished. The wick, in many cases, is as important, if not MORE important, than the candle itself. This is really true in Fibonacci S/L, T/P. The “spike”, or WICK, will make or break you.
    Also, The Candle duration, tall or short, matches the time slot that you are in. In 1 Min., each Candle is…1Min. In a Five Minute time slot, the SAME CANDLE is….5Min. This is a very important detail.

  3. Timothy says:

    You did not go into much detail, for example why are some wicks really small some are really long, some are not even there. It just seems that if this is so important you would have covered this in much greater detail. What you did present was good, don’t get me wrong I do appreciate what you did present. I just wish you went into greater detail about the wicks and the why some are not there at all. Thanks

  4. Tony Rocha says:

    thank you very easy to understand

  5. Terry Williams says:

    Thankz so much this was so helpful!!!

  6. john ortega says:

    love it, don’t ask a friend

  7. john ortega says:

    I can not say enough of how helpful this is compared to asking a friend.

    thank you
    john

  8. richard wilson says:

    I have understood more with your methods than
    anyone.

  9. chris wagner says:

    Very informative and clear,to the point thank you for this resource.

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