Monday, May 29, 2006

Candlestick Charting Info...


Japanese rice traders began using candlestick charts some two centuries before the first chartists appeared in America. Instead of bars, these charts have rows of candles with wicks at both ends. The body of each candle represents the distance between the opening and closing prices. If the closing price is higher than the opening, the body is white. If the closing price is lower, the body is black.

The tip of the upper wick represents the high of the day, and the bottom of the lower wick represents the low of the day. The Japanese consider highs and lows relatively unimportant. They focus on the relationship between opening and closing prices and on patterns that include several candles.

The main advantage of a a candlestick chart is its focus on the struggle between amateurs who control openings and professionals who control closings. Unfortunately, most candlestick chartists fail to use many tools of Western analysts. They ignore volume and have no trendlines or technical indicators.

From "Trading For a Living" by Dr. Alexander Elder

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Wednesday, May 24, 2006

Candle Sticks Chart

Candle Sticks Chart resource page.