Candlestick Tricks in Tamil | Advanced | Trading Mistakes
Japanese Candlesticks offer the most popular form of charting.
The candle chart bears much more information than the line chart and it is represented in an easy-to-grasp visual form.
The real body marks the area between the open and the close price. If price closes above the open, the body is hollow. If the price ends up closing lower, the body is solid.
The hollow candle is referred to as white, and the solid candle is called black, though, in reality, the chart can be shown in any color.
The narrow line – called a shadow – shows the price range for the set time period.
WHAT TIMEFRAME TO CHOOSE FOR THE CHART
Traders use monthly, weekly, daily, 4-hour, hourly, 15-minute and even 1-minute timeframes.
Ideally, traders pick the main timeframe they are interested in and then choose a longer and a shorter timeframe to complement the main one.
The longer timeframes typically contain fewer and more reliable signals. The shorter timeframes usually contain more signals with less accuracy.
There are several types of traders, and they have different trading styles.
Swing or position traders prefer holding trades for days or weeks.
They mainly focus on the daily charts for their trades. They can also make use of a weekly chart when defining the long-term trend, as you can see on the example. And track a 4-hour chart when defining the immediate short-term trend.