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When trading forex,how can I figure out the close of a candlestick? I want to know this in order to place my buy entry at the start of the next candlestick. Hello and thank you for your response. Im using a forex indicator that has given me pretty good results, however this was the issue I was having. The indicator says as long as the conditions are met, and the candle is CLOSED. My issue is having a problem identifying when it is closed? Also could you explain to me how I could use ADR. What will help me with? is it pip movement?
admin answers: Hi Nicolas, Candlesticks are not only useful for forex trading, but for any form of trading that involves charts and technical analysis (stocks, commodities, and so forth).
Firstly, you need to establish whether the candlestick is a bullish or bearish candlestick. What I mean by this is whether or not the price is higher or lower than at the beginning of the timeframe. For example, let’s say that the value of the foreign exchange pair that you’re interested in is 1.3400 at the beginning of a day. At the end of the day, the value is now 1.3300 (a decline of 0.0100 in the day). This would be represented on a chart as a red candlestick, since the overall day trend is bearish (declining). For a red candlestick such as this, the body of the candlestick would commence from 1.3400 and extend down to 1.3300, with the base of the body of the candlestick being the close price (1.3300). The opposite holds true for bullish candlesticks, which are coloured either white or green, with the top of the body of the candlestick being the close price. The sticks/tails of each candlestick indicate how far the stock has reached during that time period – long tails tend to indicate that trading in that direction wasn’t strong enough to maintain itself during that time period. Hope that helps!! Cheers!!
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