Among the most favourite trading pattern is the Japanese candle sticks. They are simple to examine and understand when the market trends or ranges. Every candle in the pattern inform you about something. It is significant for succeeding in a trader career to understand the movements of the candle correctly. Our guidebook will examine a variety of candles and what their changes mean.
The Ways the Japanese Candle Stick is Made
Every candle stick is made within a certain timeframe. In Binomo, timeframe varies from 5 seconds and up to 1 month. For instance, a 5 second candle stick appears just during 5 seconds before the next 5 second candle stick begins appearing. This succession of candles is what forms the price pattern in the chart.
While the candle appears, you will see how its size alters permanently. These alterations are an upshot of price fluctuation happening within the candle’s lifetime. Yet, every candle just seize 4 price points within its timeframe, the starting price, the final price, the top price and the minimal price during the time covered.
The Composition of the Candle Stick as it is on Binomo
Every candle stick consists of a body and 2 wicks (tails or shadows).
The body can be of green or orange colour. In certain candles, which we will talk about later, the body can be gray. The edges of the body denote the starting and final prices of the session.
At Binomo, green candles are bullish while orange candles are bearish.
Variety of Candle Sticks Present on Binomo
The Marubozu Twins
The Marubozu Twins have solid bodies. This means that there are no shadows in them. The start and finish of the trading session reveal the top and minimal prices of the session correspondingly. When the Marubozu is bullish, it is green, when it is orange, then it is bearish. Such candles appear while the market experiences a high volatility period.
Search for such candles on the Binomo platform. They generally appear after certain financial news or event influences the item being traded. Trading with them can bring you good profit.
The spinning top embodies a little body with small wicks. When there is a certain indecision at the market, these candles appear. They are a sign that one side loses to the other. For instance, if the spinning top grows up, it means that the bulls lose their market prevalence. Consequently, spinning top candles may also indicate an approaching reversal of the trend.
This belongs to an indecision variety of candles too. They resemble a sign mark and in other examples they resemble a “T” or “T” upside down. When a doji appears, it just denotes the sellers and buyers are equally coincided.
The doji might be a piece of a trend prolongation pattern or reversal pattern of the trend. The interpretation depends on the preceding candles.
Therefore, let’s stop at 4 kinds of doji candles available on the Binomo platform.
The neutral doji
This type resembles a plus mark. The starting and final prices are identical. The length of wicks is also almost the same. This signifies that the bears and bulls are equally coincided.
Long legged doji
These candles are also of indecisive kind. Nevertheless, the wicks are taller in comparison to the neutral doji. Here, the starting and final prices are identical. Nonetheless, the top and minimal prices during the session are more distant, which means that the fight between bears and bulls was more rigid.
These candles have an appearance of the upper case “T”. It appears quite seldom and usually this happens at the top of the trend that is growing. The starting and final prices are nearly the same. These candles appear when bears control the greater part of the trading session, but bulls move in raising the prices higher before the end of the session. To trade Dragonfly doji, join the stage when the price breaks the candle’s top. Besides, put your stop at the base of the doji.
This belongs to a bearish reversal type and it resembles an upper case “T” but upside down. Here, the bulls ran the greater part of the trading session until the bears appear and make the prices go down. As a result, the starting and final prices are nearly identical. Such candles mainly appear at the base when the trend goes down and shows the forthcoming reversal.
These candles are of a bullish reversal type. The hammer consists of a little full body with a long wick at the base. It appears when the trend goes up and highlights that the trend is proceeding.
Its reverse is the hammer upside down with a little body and a long wick at the top. They generally appear at the base when the trend goes down. If you see this kind of candles, be ready to face the market turning to an uptrend.
Candles are among the greatest patterns for trading on Binomo. Every candle can provide you with a lot of useful information, especially under the condition that you analyze it in connection with the previous 1-2 candles. If you are well-skilled in interpreting the candles, you will experience no problems with earning money with Binomo!
Despite the fact that you can trade only using the candles, there are some other trading instruments and indicators that can be applied with candles. So, as you are well aware of what candle sticks to search for on the Binomo platform, create a demo account just now and test the above-mentioned candle stick tactics at Binomo.
Success to you!
We are sorry that this post was not useful for you!
Let us improve this post!
Tell us how we can improve this post?
Download this article as PDF. (English)Enter your Email Address