Please kindly explain to me. What do they mean by the High value of this candle and Low value of this candle? And what does Close value and open value really mean?
Explain to me so easily so that i can understand better.
Hi.
If we assume your candles are on a 1 hour chart and you’re looking at the 9:00-10:00 candle for simplicity.
OPEN is the price at 9:00
CLOSED is the price at 10:00
HIGH is the highest point price reached between 9:00 and 10:00
LOW is the lowest point price fell to between 9:00 and 10:00
Hope that helps
It’s better to form fully candle at 10 to check the price right? Meaning check the details on 10 itself. Because 9-10 price can be moving up and down
Yes, wait for the close, as many candles start off green and end up red.
Red usually means the candle closed lower than the close of the previous candle (and green means it closed higher than the close of the previous candle). Some charts can be re-set like yours so that red means lower than the open of the current candle, while green means higher then an the open of the current candle. But be careful, this is not the standard format.
Ok thx. Last question. If there are many green candles means alot of people are buying right? and if it’s more red candles means alot of people selling?
In principle yes, its supply and demand: supply goes up so price comes down, demand goes up so price goes up. For shorthand we say the buyers are in control or there are more buyers than sellers.
But I suppose technically, there has to be a seller to supply to every buyer. So a rising price more accurately means the people who want to buy are wiling to bid the price higher, and there’s more of them wanting to buy than there is people wanting to sell, or they want to buy more of whatever than there is offered for sale.
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as another point of view
Point 1.
you will see in MT-4 something called OHLC
it stands for Open , High, Low, Close
you will find that many indicators use these values as calculations
Point 2.
when a previous candle finishes, Meaning. if it’s a 1 Hour Chart, then… it would be the end of that hour and the start of a new hour
when that happens, NEW CANDLE STARTS TO FORM
the new candle OPENS when the old candle CLOSED
from that point on… it then goes up or down based on supply and demand or Buying and selling in the market.
the candle is a reflection of the movement of price in the market.
so… if the candle goes UP FIRST it will turn green and it keeps going up , UNTIL IT STARTS TO COME DOWN
NOW this is how the HIGH IS FORMED
at the point at which it starts to come down a liittle, THAT HIGH POINT is recorded (Remember that)
then it comes down again,
now…
IF that high is exceeded again, A NEW HIGH IS CREATED (So long as it’s within that time period of the candle)
and then price goes down and CREATES A LOW at the point where price goes down down down then TURNS UP A BIT (At that point a Low is recorded)
so now we have
OPEN
then it went up to create a HIGH
then it came down to create a LOW
and now we just wait until the end of the period and THE CLOSE is created
that’s how a candle forms
now RED vs GREEN
if it opens
then goes up first… THE CANDLE WILL BE GREEN (Because price is above the entry point
now… if price goes below the entry during the candle period it WILL TURN RED
and it will keep changing throughout the whole period to reflect up or down
but when the CLOSE happens , the candle remains the colour that it is at the close
DOES THAT HELP ?
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So you are trying to say, when the new candles forms, the high is created first based on the supply?
Lets say on your image, at 9:00 the previous candle closed at 1.081so the new candle opens there as well.
Between 9:00 and 10:00 price fluctuates between 1.0820 and 1.0775. This can happen at any time during the hour and in any direction, depending when buyers outnumber sellers and vice versa.
Finally, at 10:00, the candle closes at 1.0789
Although price rose at times during the hour, it closed lower than the opening price, so your candle is red
what i’m saying is
IF… the price goes up after the open of the candle… then yes it will go green and the HIGH IS CREATED FIRST
BUT…
IF price goes down first before it goes up, then THE LOW WILL BE CREATED FIRST
in short it goes like this
- A Candle opens
- it goes in a direction based on the supply and demand at the time
- it creates a High or low first
- the it creates the opposite of what was first created
- then the candle closes
simple as that
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