Part-time Trading - Part 4.1

As promised before we are going to learn about Price Patterns. We are going to place our trades on the support / resistance with the help of these price patterns. These Price Patters are nothing but the Candle-stick formation.

What are Candlesticks?
Candlesticks are used to describe the price action during the given time frame.
Candlesticks are formed using the open, high, low, and close of the chosen time period.

• If the close is above the open, then a green candlestick (usually displayed as green or white) is drawn.
• If the close is below the open, then a red candlestick (usually displayed as red or black) is drawn.
• The red or green section of the candlestick is called the "real body" or body.
• The thin lines poking above and below the body display the high/low range and are called shadows or wicks.
• The top of the upper shadow is the "high".
• The bottom of the lower shadow is the "low".

That's all for now. Let us continue about the Price patters in the next post.