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Trading with candlesticks has become popular because of the fact that candlestick charts present more information than other trading charts. Those unfamiliar with candlesticks should first have candlestick charts explained before using them in trading. Because candlestick charts provide a range of information and can be interpreted easily, most people choose trading with candlesticks compared to utilizing other data analysis tools for trading. People who want candlestick charts explained should also find a way to learn how to read candlestick charts properly. Reading candlestick charts is not that hard. This is because a candlestick chart only consists of two types of line: a narrow line that's vertical in shape, and a wide line that's also vertical in shape. Candlestick charts explained will also show you that a candlestick chart has information such as: open, low, high, close, etc. Traders who want to know how to read candlestick charts correctly will have to first understand what each of the candlestick terminologies mean. Once they know their meanings, they can start reading candlestick charts and come up with the proper interpretation and analysis: The figure called as 'Open' actually refers to the first trading price, and is usually presented as a wide vertical line. Candlestick charts explained will also inform you traders that the Open indicator can be seen either at the top of the wide vertical line or at the bottom of the wide vertical line. If a downward candlestick is what you are using when trading with candlesticks, the Open indicator is located on top. Use of an upward candlestick, on the other hand, shows the Open indicator at the bottom part of the line. Candlestick charts explained also contain information about the highest price that was traded. The said price is referred to as the 'High'. The 'High' figure is found at the wick of the candlestick, or the top portion of the thin vertical line. The term 'Low' in candlestick charts explained, on the other hand, refers to the lowest price that was traded. People who want to find out how to read candlestick charts should know that the 'Low' indicator is actually found at the bottom part of the candlestick wick. The 'Close', another terminology you'll come across if you want candlestick charts explained, refers to the last price that was traded during your time of trading with candlesticks. When reading candlestick charts, you'll see that the 'Close' indicator, just like the 'Open' indicator, is found at the bottom or the top of the wide vertical line on the chart. The only difference is that in an upward candlestick, the 'Close' figure is placed on top, while in a downward candlestick the 'Close' figure is placed at the bottom. The above mentioned terminologies are just a few of the various terminologies one should understand when it comes to trading with candlesticks. Remember that you need to have candlestick charts explained further if you really want to be successful not only in reading candlestick charts, but also in making profit more easily with the use of Candlestick charts. Karen Winton is a trusted reviewer. To learn more about trading with candlesticks, read: Candlestick Trading for Maximum Profits. For tips on selling physical products, view: Info Product Killer.
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