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Candlestick Charts and Patterns
Candlestick charts are perhaps the most popular trading chart. With a wealth of data hidden within each candle, the patterns form the basis for many a trade or trading strategy.
Here we explain the candlestick and each element of the candle itself. Then we explain common candlestick patterns like the doji, hammer and gravestone. Beyond that, we explore some of the strategy, and chart analysis with short tutorials. Reading candlestick charts provides a solid foundation for technical analysis and winning binary options strategy.
Japanese Candlestick Charts Explained
Japanese Candlesticks are one of the most widely used chart types. The charts show a lot of information, and do so in a highly visual way, making it easy for traders to see potential trading signals or trends and perform analysis with greater speed. So let us explain what Japanese Candlesticks are, how the “candles” are created and basic candlestick interpretation.
It’s a fact that many novice traders, new to the trading industry, focus on candlesticks because they are easy to understand and give a feeling of real trading to someone. But it’s also a fact that nobody made money only using candlestick patterns. Many new traders are excited because they have some good results in the beginning by candlestick patterns without spending much time reading about trading, but in the long run they fail and they come back to learn more.
Candlestick patterns are a good tool, but only for confirmation. Of course every trader should know how to read the candles. I believe this is “Lesson #1” for the new traders. If you know how to read the candles properly, you can use them for confirmation in your trades – but first you must know the basics
Best Brokers For Candlestick Charts:
Japanese Candlesticks are a type of chart which shows the high, low, open and close of an assets price, as well as quickly showing whether the asset finished higher or lower over a specific period, by creating an easy to read, simple, interpretation of the market. Candlesticks can be used for all time frames – from a 1 minute chart right up to weekly and yearly charts, and have a long and rich history dating back to the feudal rice markets of ancient Samurai dominated Japan. When information is presented in such a way, it makes it relatively easy – compared to other forms of charts – to perform analysis and spot trade signals.
To understand how this works, we’ll need to look at how each bar is constructed. As indicated, each candle provides information on the open, close, high and low of an assets price. Each reflects the time period you have selected for your chart. For example, if a 5 minute chart was used each candle shows the open, close, high and low price information for a 5 minute period. When 5 minutes has elapsed a new 5 minute candle starts.
The same process occurs whether you use a 1 minute chart or a weekly chart.The open and close are marked by the “fat” part of the candlestick. This is called the real body, and represents the difference between the open and close. If the close is higher than the open, the candle will be green or white; if the close is lower than open the bar will be red or black but other colors can often be found on different charts.
The open or close are not necessarily the high or low price points of the period though. The high and low prices for the period are marked by a “wick” or “upper shadow” and “lower shadow.” The high point of the upper shadow gives the highest price the asset went during that period, and the low point of the lower shadow gives the lowest price the asset went during that period.
If there are no upper or lower shadow it means the open and close were also the high and low for that period which in itself is a kind of signal of market strength and direction. Occasionally you will also see bars that are nearly all upper and/or lower shadow, with very little real body. These are called dojis and have special meaning, a market in balance, and often give strong signals.
Due to the highly visual construction of candlesticks there are many signals and patterns which traders use for analysis and to establish trades. Some patterns will be classed as ‘advanced strategies’, but there are general principles that those new to Japanese Candlestick charts should understand. Here are a few, I’ll go into more detail on some of these ideas further along in this discussion.
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- A long real body indicates stronger pressure than a small real body. For example, a long green body represents stronger buying pressure than a small green body. A long red body represents stronger selling pressure than a small red body.
- Shadows can be used to determine what group of traders–buyers or sellers–was strongest at the close of a candle. While not always, it is quite possible that the strongest group at the close of the prior bar will be strongest heading into the next bar.
- A long lower shadow with very little upper shadow indicates sellers tried to push the price down, but ultimately the buyers succeeded in pushing the price back up and were strong at the close.
- A long upper shadow with very little lower shadow indicates buyers tried to push the price up, but ultimately the sellers succeeded in pushing the price back down and were strong at the close.
What many traders fail to pay attention to is the tails or wicks of a candle. They mark the highs and lows in price which occurred over the price period, and show where the price closed in relation to the high and low. During an average day of trading upper and lower shadows are commonly formed, and they don’t really mean that much. But on some days, as when the price is trading near support or resistance levels, or along a trend line, or during a news event, a strong shadow may form and create a trading signal of real importance.
If there is one thing that everyone should remember about the candle wicks, shadows and tails is that they are fantastic indications of support, resistance and potential turning points in the market. To illustrate this point lets look at two very specific candle signals that incorporate long upper or lower shadows.
The hammer is a candle that has a long lower tail and a small body near the top of the candle. It shows that during that period (whether 1 minute, 5 minute or daily candlesticks) that price opened and fell quite a distance, but rallied back to close near (above or below) the open. This is sign that buyers stepped into a weak market and are “hammering out a bottom.”
Long lower tails are seen all over the place, and aren’t significant on their own. But they are significant when a long lower tail–hammer–is seen near support. It indicates the sellers tried to push the price through support but failed, and now the buyers are likely to take price higher again. The thing to remember here is that a hammer could indicate a new area of support as well.
Figure 1 shows an example of a hammer candle on the USDJPY Daily Chart.
Three candles, all with long tails occurred in the same price area and had very similar price lows. That three long tailed candles all respected the same area showed there was strong support at 100.800. When the hammer occurred (third candle in the series with the red area below it) it showed that price was likely to continue higher, since sellers had tried to push the price lower, but couldn’t.
The gravestone (or ‘tombstone’) is a candle that has a long upper tail and a small body near the bottom of the candle, opposite of the hammer. It shows that during the period (whether 1 minute, 5 minute or daily candlesticks) that price opened then rallied quite a distance, but then fell to close near (above or below) the open. This is sign that sellers stepped into a hot market and created a graveyard for the buyers.
Long upper tails are seen all over the place, and are not significant on their own. But they are significant when a long upper tail–gravestone–is seen near resistance, unless of course a new resistance level is being set. It indicates the buyers tried to push the price through resistance but failed, and now the sellers are likely to take price lower again.
Figure 2 shows an example of a gravestone candle on the EURUSD hourly chart.
The price tested this resistance area multiple times, finally it broke above it, but within the same bar (one hour) the price collapsed back. This indicated the buyers didn’t have control and that the breakout would likely fail. The price did proceed lower from there.
Tails, Wicks And Shadows
Look for them on candles, they are important. Multiple long tails in one area, like in figure 1, show there is a support or resistance there. If a hammer or gravestone candle occurs near support or resistance, expect a reversal since the support/resistance has held. A hammer opens and closes near the top of the candle, and has a long lower tail. A gravestone opens and closes near the bottom of the candle, and has a long upper tail. By themselves they can give shady signals so beware, when used with other analysis like support/resistance, stochastic, MACD, trend line etc are a very powerful tool of the modern trader. The next thing to look out for is the doji, a candle that combines traits of the hammer and gravestone into one powerful signal.
Doji Strategy for Binary Options
Dojis are among the most powerful candlestick signals, if you are not using them you should be. Candlesticks are by far the best method of charting for binary options and of the many signals derived from candlestick charting dojis are among the most popular and easy to spot.
There are several types of dojis to be aware of but they all share a few common traits. First, they are candles with little to no visible body, that is, the open and closing price of that sessions trading are equal or very, very close together. Dojis also tend to have pronounced shadows, either upper or lower or both. These traits combine to give deep insight into the market and can show times of balance as well as extremes. In terms of signals they are pretty accurate at pinpointing market reversals, provided you read them correctly.
Like all signals, doji candles can appear at any time for just about any reason. All they really signify is a balance of today’s traders; if buyers and sellers are in balance during a session price action will remain stable. It takes other factors to give the doji true importance such as volume, size and position relative to technical price levels. Truly important dojis are rarer than most candle signals but also more reliable to trade on. Here are some things to consider.
First, how big is the doji. If it is relatively small, as in it has short upper and lower shadows, it may be nothing more than a spinning top style candle and representative of a drifting market and one without direction. If however the doji shadows encompass a range larger than normal the strength of the signal increases, and increases relative to the size of the doji. Candles with extremely large shadows are called long legged dojis and are the strongest of all doji signals.
Second is where the doji appears; does it appear at a support or resistance line or is it floating in a no man’s land between two support/resistance targets. If it is not near a support/resistance line the signal is much weaker than if it is confirming a support or resistance. In fact, if the shadow, either upper or lower, crosses one of these lines and then closes above/below it the signal is quite strong indeed.
One of this type appearing at support may be a shooting star, pin bar or hanging man signal; one occurring at support may be a tombstone or a hammer signal. Look at the example below. There are numerous candles that fit the basic definition of a doji but only one stands out as a valid signal. This doji is long legged, appears at support and closes above that support level.
Another confirming indication that a doji is a strong signal and not a fake one is volume. The higher the volume the better as it is an indication of market commitment. In respect to the above example it means that price has corrected to an extreme, and at that extreme buyers stepped in. It also means that near term sellers have disappeared, or all those who wanted to sell are now out of the market, leaving the road clear for bullish price action.
Doji’s can be trend following or indicate reversals so that must be considered as well. A doji confirming support during a clear uptrend is a trend following signal while one occurring at a peak during the same trend may indicate a correction. The same is true for down trends. Failing to account for trend, or range bound conditions, can be the difference between a profitable entry or not.
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Doji Patterns – Conclusions
While doji’s can be fantastic signals for binary options they should be considered a signal to look for entry, and not as an entry itself. In the example above a call option is clearly the correct thing to do but if purchased at the close of the doji, it could easily have resulted in a loss. The doji shows support like sonar shows the bottom of the ocean but that does not mean a reversal will happen immediately. The best thing to do is to wait for at least the next candle and target an entry close to support. This same is true for resistance as well.
Doji’s are also fine to use in any time frame but remember the rules. When changing time frames add this; the doji’s size and analysis is relative to other doji’s and candles in that time frame. A long legged doji doesn’t mean the same thing if they appear frequently on the charts unless it is significantly larger the average long legged doji.
Expiry will be your final concern. If entry is taken very close to the targeted support/resistance level a one or two bar expiry is most likely all you will need but it may be prudent to extend that out to 5 bars just to make sure.
Chart Patterns Explained
Have you ever heard the saying, “can’t see the forest for the trees”? This is a very apt saying that simply means getting caught up in the small things and not seeing the bigger picture. This can happen all to often when trading and is especially common among newer traders. This can happen in a number of ways such as too many indicators, paying too much attention to minor day to day fluctuations or in the case of today’s discussion, paying to much attention to your Japanese Candlesticks. Candlesticks, and candlestick charting, are one of the top methods of analyzing financial charts but like all indicators can provide just as many bad or false signals as it does good ones. For that reason alone it is a good idea to filter any candle signal with some other indicator or analysis.
I’m going to assume that you already know something about candles because you are this deep into the article already. I like them because they offer so much more insight into price action. Switching from a line chart to an O-H-L-C chart to a candlestick chart is like bringing the market into focus. The candles jump off the chart and scream things like Doji, Harami and other basic price patterns that can alter the course of the market. The thing is, these patterns can happen everyday. Which ones are the ones you want to use for your signals? That is the question on the mind of any one who has tried and failed to trade with this technique.
Candlestick Analysis – Examples
Look at the chart below; a new candle forms every day. Some day a bullish candle, some days a bearish one, some times two or more days combine to form a larger pattern. Not all of them result in the “expected” movement. Look at the chart below. I have marked 8 candle patterns widely used by traders that failed to perform as expected.
Why is this you may ask yourself? It all comes down to where the signals occur relative to past price action. When I start to add other indicators to the charts it may become clearer. The first and foremost reason is that the candle patterns I have marked do not take any other technical or fundamental factors into account. I know that as binary traders we do not use much fundamental analysis but any trader worth his salt has at least a minor grip on the underlying market conditions. After that some simple additions to the chart can help to give some perspective and allow you to see the forest, and not just the trees.
Time frame is one important factor when analyzing candlesticks. The very first thing I like to do is to literally take a step back from my standard chart for a better view of the market. I use charts of daily prices with 6 months or one year of data. To get the broadest view I can I use a chart with 5 or 10 years of data. The 5 year chart is where I draw support, resistance and trend lines that will have the most importance in my later analysis. Having an idea of where price action, and the candlesticks, are in relation to the long term trend and areas of support/resistance is crucial to interpretation. A candle signal occurring at or near a long term line is of far more value than one that is near a shorter term line. You can use weekly bars or daily, it doesn’t matter, but sometimes a really strong candle signal will appear on the weekly charts too.
Moving averages are another good way to help weed out bad candlestick signals. There are many types of moving averages but I like to use the exponential moving average because it tracks prices more closely than the simple moving average. I use the 30 bar and 150 bar moving averages but you can use any duration that works for you. The point is to use the EMA’s to help confirm or deny potential candle signals. In theory, each moving average represents a group of traders; the 30 day EMA short term traders and the 150 day EMA longer term traders. A candlestick signal that fires along the moving averages is a sign that that group of traders is behind the move. A signal along the 30 bar EMA would not be as strong as a signal along the 150 bar EMA while a signal that fired while the two EMA’s were tracking alongside each other would be the strongest of all.
Volume is a third factor that I like to take into consideration when analyzing candle charts. Volume is one of the most important drivers of an assets price. The more people that want to buy an asset the higher and quicker prices will move up. The more people that want to sell an asset the lower and quicker prices will drop. This can also be applied to candlesticks, the more volume during a given candle signal the more important of a signal it will be. Further, if volume rises on the second or third day of a signal that is additional sign that the signal is a good one.
Take a look at the chart below. I have redrawn support, resistance, trend lines and moving averages. Then I looked for candle signals along those lines and correlated volume spike to them. Using the additional analysis techniques the 8 losses on the chart above could have been avoided and instead been turned into these dozen or so winning trades. The volume does not spike on every signal but there are a few significant spikes to see.
Reading Charts – Closing Guide
There are many candlestick patterns for you to explore if you enjoy this type of “visual” trading style, I’ve barely scratched the surface. Candlestick patterns are useful for both short and long-term trades as these patterns occur on one minute charts right up to weekly charts (or longer). Looking at a chart you’ll see lots of patterns, the key is to understand which ones are really signals and which ones are just random market movements. Be selective, and only trade when there are confirming factors and indicators. Use other technical analysis methods to validate all patterns. For example, a bullish engulfing pattern that occurs at a support level is more likely to work out than if a bullish engulfing pattern occurs on its own
Binary Options and Candle Charts
Binary Options Candle Charts
These days it’s hard to imagine financial trading without the use of specialized liquidity charts, which depict the asset price indicators in a specific moment of market fluctuation. Yes, the informatization of the calculation process of financial indicators and market liquidity at this stage of technological and market growth significantly simplifies the work of investors and analysts. However, that doesn’t mean that the basic form of displaying and calculating market charts appeared recently, many of the ones speculators are familiar with are very old. In our materials, we propose going through the classical method of displaying financial asset rates, the “Japanese Candles”. Here we will address the technical parameter of working with this type of chart, go through the more effective signals of this kind of rate and give you recommendations on how to profitably use chart candles in binary options trading.
So, despite the enormous popularity of candle charts among professionals and private investor, this type of display and rate calculator has an altogether short history! It is a complete mistake, despite how actively Japanese candles have been used in the analysis for the past few decades, to think that this market liquidity format has been around for centuries. Japanese CandleSticks were developed in the mid-century by rice market traders. This chart construction enabled mid-century speculators to carry out their activity more effectively. Nowadays, the chart candles were popularized by two famous traders, a Japanese financial expert, theorist, and founder of modern Japanese Candlestick Analysis, Munehisa Homma, and the American trader Steve Nison, who actively promoted using candlestick charting for trading strategies to professional traders.
In general, the majority of investors familiar with the origins of Japanese Candlestick rate analysis think that Nison was the one who developed this direction of market forecasting. However, actually, Steve Nison simply discovered this method on a trip to Japan and actively adopted it. He was very interested in the approach Asian investors took to analyzing chart liquidity. He collected as much information as he could and analyzed and tested it on the chart. He produced a wide range of material, where he wrote all the most famous candle patterns that generate trading forecasts. This systematic, practical and useful work is considered the turning point for candle chart analysis. So, we’ve briefly gone over the history, now it is worth moving to the Japanese Candlesticks Analysis in practice.
What are Japanese Candlesticks?
“Japanese Candlesticks” are a specialized method for analyzing and constructing chart liquidity, in which market price fluctuation are depicted as rectangles in various colors, where the colors represent the type of candle. In this method, the following indicators are required to construct candles;
• The asset price at the time the rate candle is opened
• The asset price at the time the rate candle is closed
• Maximum level of price movement
• Minimum level of price movement
On the basis of the data shown, the rectangles appear either green or red on the chart. The color of the candle is dependent on the type of indicator it represents. In the classic method configuration, there is a distinction made between two types of candles:
• The ascending (green) candle represents that the price level at closing was higher than the price level when opened. This candle signifies the buyers’ advantage over sellers and the formation of an upward trend
• The descending (red) candle is the complete opposite, the price level at closing is lower than when the candle opened. This type of Japanese Candlestick speaks to the prevalence of sellers over buyers and identifies a downward trend.
This display format allows for effective market analysis in various time periods. It is possible thanks to the clear selection of analyzed chart frames and a larger collection of necessary information for rate chart analysis. We receive smooth asset liquidity signals without any interference and minimal price volatility bursts. As a visual demonstration, we’ve provided you a depiction of the Japanese Candlestick analysis method:
Thanks to the calculation system of this type of liquidity rate, and also the chaotic nature of the market, we can observe on our active charts candles of various configurations and forms of construction. This allows us to achieve fairly distinct signals in a chaotic market that lead to highly accurate, profitable contracts. The wide variation of technical rate candle signals for forming contracts specifically, and also the high level of accuracy of forecasts generated by them, is what has made candle charts so popular for trading with binary options. It is very simple. There is one main condition in the working algorithm of futures rates, which is that there must be an accurately defined price movement vector in a specific perspective. Japanese Candlesticks, in turn, accurately define the market reversal levels to the new trend movement or prolonged correction fluctuations, signaling the ideal moment to place a trade. On that note, we propose working through the most popular Japanese Candlestick patterns.
Candle Analysis Patterns
Technical analysis of Japanese Candles includes several dozen different signal patterns for asset liquidity formation and candle chart construction models. Of course, every model is interesting in its own way and aids effective trading with classic exchange tools, their derivatives, and in particular, online rates. However, today we will give an overview of the most simple, but effective, Japanese Candlestick models:
It is a candle that signals to the trader the completion of a downward trend or a short-term price correction recoil on an ascending trend. The Hammer candle has a clearly identifiable construction method. There is a long shadow from below and a small body that looks like a hammer.
Usually, this type of candle is used as a signal for forming contracts on the growth of the asset price. When trading on the futures market, the hammer is used by investors as a signal tool for scalping trading operations. Furthermore, it is worth noting that the effectivity level of a signal of this format is more than 80%, which is certainly one of the most accurate indicators.
In essence, this candle has the construction format of the “Hammer”. However, the distinguishing feature of this liquidity chart model is it is formed on the level of market resistance (the classic hammer is formed on support). In this case, the candle also has a long shadow from below and a small body above:
The Hanging Man is a pattern that identifies the end of an upward trend and the formation of high levels of resistance. Signals of this type enable investors to achieve over 70% profitable futures contracts.
When considering this type of Japanese Candlestick, it is worth mentioning that this method and type of candle has been nicknamed “Doji”. This type of candle is characterized by a slim body and long shadows from above and below. In essence, doji more often than not looks like a cross. Returning to the shooting star, it is a rate candle, in which we observe a long shadow from above and a small body below. This type of candle always signifies an ascending trend;
The formation of this type of Japanese Candlestick signals an impending change in the direction of the trend, enabling you to form futures contracts with a high level of certainty in the forecast.
It is worth highlighting an important point here. The shooting star is often confused with the famous Pin-bar pattern! This type of candle is also formed at the point the market trend changes and is a powerful and effective signal for forming binary contracts. However, there are clear differences in their features. The pin-bar can form on either support or resistance depending on the current trend tendency. Second, the pin-bar could be an ascending candle or a descending one. Third, the main identifying feature of a pin-bar is its long shadow from below or above the body of the candle!
This asset chart candle pattern is in connection with the reversal format. Usually, traders use this signal model for trend related trade operations. The “Belt Hold” is usually formed on stable market movement trends when short-term corrections come to a close, making the signal pattern a very effective means of analysis for trading on the binary options market. When considering the practical use of this Japanese Candlestick format, we’d note that the primary identifying pattern signal supports generation on the asset candle chart with a unique opening level and a completely different closing level. Usually, the model candles have a different direction of construction:
This Japanese Candlestick pattern is a widely recognized signal model. Its main advantage is its simple identification method on the asset chart, and also the level of accuracy of the signal. This candle pattern can be generated as a trend movement reversal identifier, and also as a trend movement continuation model after a price recoil.
The identifying pattern signal is the formation of a combined rate candle liquidity, in which one candle completely absorbs its own former body, and simultaneously, the candles should have different construction directions:
This Japanese Candlestick model is considered among professional analysts as one of the more effective and successful patterns for trading with binary options.
It is another one of the more common Japanese Candlestick models. It identifies rate reversals for the formation of new trend movement. The primary identifying feature of this model is the formation of the candle liquidity chart of a long shadow above or below, the shadow appearing in the shape of tweezers. At the same time, an interesting method for generating patterns can be observed. The rate reversal takes place when the model (in which the candle signals are positioned near) and the regularities (where the candles with shade are spread across several rate candles) are fully formed. The “Tweezer” is highly effective, more than 75%, and also is a powerful identification tool for market fluctuation manifesting through trend reversals.
We have provided you with the most effective trading patterns for candle charting on the futures market. Mastering this collection of signal regularities enables you to expand your technical analysis toolkit and opens up the possibility to maximize your trading signals.
“General Risk Warning: Binary options and cryptocurrency trading carry a high level of risk and can result in the loss of all your funds.”
How to Read And Understand Charts
Binary options charts are used by traders to track the progress and movement of various assets. There are multiple types of charts used for numerous types of trading, but there are some common ones that you will see more often. From simple one screen line formats to multiple screens displaying various assets and data, it is essential to make sure you have the data you need to be able to trade effectively.
Each one follows a similar format. First, you have the y-axis which has numbers written up and down the side of the chart referring to price; then there is the x-axis along the bottom which represents the time or date. It is necessary, when it comes to online trading, to ensure that all data is shown in real time to be able to trade effectively.
The type of chart that you will use will depend on the source of the data and the options that you are trading in. From simple charts to more complicated options that offer a more detailed analysis, there are a whole host of solutions available to traders no matter what level and experience you have.
In this guide, you will learn:
What binary charts are and how they work Why Identify the different chart types How to use different charts advantageously
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What Are Trading Charts
Charts are used to display data in various formats. When it comes to binary options, they are used to demonstrate the movement of an asset in a specific time frame and the historical data of that asset. This information can then be used to study the various assets, identify trends and help you to understand the movement of the different trade types offered; commodities, stocks, indices and currencies.
It is much easier to trade when you have the historical and current real-time data available to you as you are more likely to be able to identify patterns and use them to make successful trades.
Those traders who are just starting can use the basic formats to understand the price of an asset and the trends over time. Beginning at a basic level is probably better, to start with as it allows you to become familiar with the various assets one by one. As you get more experienced with charts, you can begin to examine them in greater detail and look for more in-depth data.
The type of chart that you will use will depend on the options that you are trading in.
The Different Types of Charts
Tick, line and candlestick charts each of the different types serves a different purpose, and some of them are more complicated than others.
For simple trade types such as short term, High/Low options involving one asset type you would use a simple tick or line chart. For more complicated trades, when you need more information, you might use a candlestick chart (candlestick because it looks like a candle with a wick coming out of the top).
Many brokers offer a simple line chart which is OK for necessary trades and beginners, but for those who need more data and in-depth analysis, an alternative could be better. It can also depend on the types of assets you’re trading, some assets are faster moving and need more chart options and data.
There are many services online that offer more detailed analysis but before you choose it is essential to ensure that you understand what you are looking at and how to use the data presented.
Choosing Your Chart
The chart that you use will depend on the type and number of assets that you are trading in. It will also depend on your level of experience and your ability to read and analyse data.
Brokers have their form of charts on their trading platform that is displayed when you click on to their trading platform. These vary significantly between brokers and while some are fundamental others can be much more advanced. If you prefer to have a lot more data to analyse, then you will need to choose your source of data very carefully.
Sometimes they can be very basic so for those that prefer more information you can use chart sites with more advanced formulas. Avoid the temptation to rush in and get caught up in the buzz of your first trade. Take some time, analyse the various information that is available to you, have a look at the various data of the assets that you think you might choose and start to become familiar with the trends of each.
How to Use Charts And Data
First of all, you choose your asset; usually in a search box above the chart. Next, you pick your time frame; this is generally in the form of a drop-down menu next to the asset search box. If you want to compare the performance of two different assets, then you can choose to use the comparison tool.
To alter the term, you can usually zoom in and out to check the performance over a day, week, month, year etc. Now while this type of search functionality is offered by some brokers, for others, it is a case of scrolling through and choosing your asset and then clicking to reveal a simple data display.
There are various sources of information that will answer questions about the different charts and how to read them, but if you are unsure and nervous, you can always use a demo platform to get familiar with using the information before you start trading with actual funds.
Many brokers offer a demo platform with virtual money, often they are free, sometimes though you need to have chosen your broker and deposited a minimum amount before you can use it. Finding a free demo platform is an excellent place to start.
Robert has consulted for our website for five years and is a well-established member of the team. While he is passionate about the site, most of Robert’s time is focused on his current position as CEO of a professional coaching company.
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