Looking at Candlesticks, I am getting the idea that between the Open and Close in either direction, is where actual trades are being made made. What I don’t understand is what the Shadows represent i.e. the lines at either end of the candlestick. Would some one please give me some ideas?
When you’re looking at Daily candle:
- Upper wick shows the highest price reached on given day
- Lowes wick shows the lowest price reached on given day
- Open price reflects the price at the beggining of day
- Close price reflects the price at the close of the day
Below is H1 chart to show how the day looked like on AUDUSD
You see where price started at midnight and where it ended at midnight next day.
Wicks show the extreme prices achieved during this time. And below the same period on D1
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wicks also represent the prices that were rejected according to this guy → The Ultimate Candlestick Patterns Trading Course (For Beginners) - YouTube
I see, you get few answers! You can use Support/resistant levels to know the nature of market trend!
Candlesticks are simple metrics. There is nothing complex regarding this scale.
You may refer the online portals and some videos to better understand the concept.
Rather than depending on text I would suggest you to look for video tutorials
i dont think so , video tutorial can be better for this.
Shadow, or wicks, represent the highest/lowest, opening/closing price of a currency pair during a day or time-frame. Btw, you can read candlestick candlestick charting techniques by Steve Nison for more insights.
Candlesticks patterns are easy but if you try to understand the whole market context based on the Price Action trading; then it’s not easy!
The Japanese Candlestick lesson from the School of Pipsology has a good explanation about those shadows.
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The shadow which you refer to in your question, is also called the wick. This line is drawn on a candle in a candlestick chart to show where the price has varied in relation to the opening and closing values. These shadows essentially depict the greatest and lowest prices at which a securities has traded during a certain time period.
Is there a button or something in MT4 that will show a day long candlestick? This looks like it might be usfull.
That would be the Daily (D1) time frame chart. You should get on the School of Pipsology bandwagon. Have a read. It answers so many of the beginner questions you will come across as you get more into trading.