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  1. #1
    Senior Member Mick's Avatar

    Candles grrrrrrrr!!!! !!!

    Hi guys!!! I am about half way through college and I still can't get the hang of these stupid candles and see whether price goes up or down. Is there a simpler piece of info that describes them better???? I just don't understand it in the context!! I have read everything and still spaced out. I had a quick look at metatrader 5 and watched the candlesticks in progress. All I know is the full ones go down and the hollow ones go up. If either one of them is a long one it will be a strong down or up movement. Other than that I get lost. I really want to get into these candles because I like the way they work!!! Now I'm going to throw a prawn on the barbie!!!!

  2. #2
    Legendry Member Okane's Avatar
    Hey.
    Looking at one candlestick is not gonna tell you much...
    For example, I am looking at EURUSD right now, M5 and I see a nice M5 pinbar going down which is (in textbook standard)
    a good sign for a put option, yet price kept going up. Obviously, I didn't go for a put there thanks to more advanced charting methods
    such as looking for targets, trendlines, micro trends etc... Check this article out, it describes how a candle is constructed.

    Anyway, these are hard to explain in writing and takes time to master. I suggest you read more on the candlesticks but also check out some of the videos on our channel.
    Once you have seen a few of them in which I show how I trade you might get the hang of it!
    I recommend this price action playlist.
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  3. #3
    Senior Member Mick's Avatar
    Quote Originally Posted by Okane View Post
    Hey.
    Looking at one candlestick is not gonna tell you much...
    For example, I am looking at EURUSD right now, M5 and I see a nice M5 pinbar going down which is (in textbook standard)
    a good sign for a put option, yet price kept going up. Obviously, I didn't go for a put there thanks to more advanced charting methods
    such as looking for targets, trendlines, micro trends etc... Check this article out, it describes how a candle is constructed.

    Anyway, these are hard to explain in writing and takes time to master. I suggest you read more on the candlesticks but also check out some of the videos on our channel.
    Once you have seen a few of them in which I show how I trade you might get the hang of it!
    I recommend this price action playlist.
    Thanks Okane. That's the article that spaced me out. I'll read it again. Just all the BO jargon gets me. I have seen one of the videos but I'll search for more.

  4. #4
    Legendry Member Michael Hodges's Avatar
    ok, stop looking at such short term charts. YOu can get signals there but it is really tough to be good at, the market can be very erratic and make random seeming movement. For learning you need to step it back to the daily charts, the hourly at least, where volatility is lower, the range per candlestick is a little more steady, the news is easier to keep up with and the signals are clearer. Now, that being said, you need to understand that there is a candle every day and every one of them could be part of one pattern or another. the ones that mean something are the ones that occur at significant levels like support or resistance, or a moving average.

    Also, understand that about 98% of the time the market is just chilling, like a calm(ish) lake where waves ripple and lap against each other with more or less frequency. About 2% of the time the market is trending, like a lake that is filling up or draining... those wavers ripple and lap in one direction mostly, trending in the direction of the flow of the water.

    Another perspective is like this... if the market is a huge ocean the monthly charts are the slow rise and swell of the great oceans, the weekly are the waves that sweep across those oceans, the daily charts are the smaller waves the make up the big waves and below that you are just looking at a ripple on the surface of a small wave being eaten up by a big wave while the ocean is rising and falling all around you. The swells and big waves are easiest to predict, the smaller waves and ripples almost impossible.

    When it comes to trading the global economy is the great ocean, the countries are the waves... some bigger than others, and the market is the waves and ripples. You need to have a good grasp on current events, keep up with the economy of the nation underlying your asset and the asset itself in order to read the charts and the candles. They are the pictorial representation of what the market is doing, knowing what the market is doing is fundamental to translating the message within the charts.

  5. #5
    Senior Member Mick's Avatar
    Quote Originally Posted by Michael Hodges View Post
    ok, stop looking at such short term charts. YOu can get signals there but it is really tough to be good at, the market can be very erratic and make random seeming movement. For learning you need to step it back to the daily charts, the hourly at least, where volatility is lower, the range per candlestick is a little more steady, the news is easier to keep up with and the signals are clearer. Now, that being said, you need to understand that there is a candle every day and every one of them could be part of one pattern or another. the ones that mean something are the ones that occur at significant levels like support or resistance, or a moving average.

    Also, understand that about 98% of the time the market is just chilling, like a calm(ish) lake where waves ripple and lap against each other with more or less frequency. About 2% of the time the market is trending, like a lake that is filling up or draining... those wavers ripple and lap in one direction mostly, trending in the direction of the flow of the water.

    Another perspective is like this... if the market is a huge ocean the monthly charts are the slow rise and swell of the great oceans, the weekly are the waves that sweep across those oceans, the daily charts are the smaller waves the make up the big waves and below that you are just looking at a ripple on the surface of a small wave being eaten up by a big wave while the ocean is rising and falling all around you. The swells and big waves are easiest to predict, the smaller waves and ripples almost impossible.

    When it comes to trading the global economy is the great ocean, the countries are the waves... some bigger than others, and the market is the waves and ripples. You need to have a good grasp on current events, keep up with the economy of the nation underlying your asset and the asset itself in order to read the charts and the candles. They are the pictorial representation of what the market is doing, knowing what the market is doing is fundamental to translating the message within the charts.
    Hmmmmmm ok. I'm glad u used the ocean for the example because I really do understand how the waves and ocean work being a surfer in my younger years. Let's say I'll surf The charts and make waves on the brokers!!! Lol. On a serious note I'll keep battling on at school and hope one day all this makes me say, "yeah I get that now on how that works".
    Thanks Michael.

  6. #6
    Legendry Member Michael Hodges's Avatar
    IT just takes time, like with surfing, youdidn't just get up and rip a wave, hanging ten and shooting the barrel. you had to learn to get out to where the waves were first, how to stand up, how to use the rails to turn...and then one day it all came together, it'll happen with trading too. Mark my words,

  7. #7
    Senior Member Mick's Avatar
    Quote Originally Posted by Michael Hodges View Post
    IT just takes time, like with surfing, youdidn't just get up and rip a wave, hanging ten and shooting the barrel. you had to learn to get out to where the waves were first, how to stand up, how to use the rails to turn...and then one day it all came together, it'll happen with trading too. Mark my words,
    Ok thanks Michael.

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