How to read graphics on the stock exchange. Types of price graphics. How to read a candle schedule like a book? How to read stock graphics

How to read graphics? This question worries many novice traders on Forex, realizing that many of the indicators of technical analysis are late or simply do not work. In this tutorial, consider two examples of real bidding in different markets to help novice traders understand:

1. How to learn to read the Forex market. To do this, we will analyze Japanese candles currency pair Dollar / Ruble, USDRUB.
2. How to read stock graphics. For this purpose, we will study the schedule of the Barprom Shares of the company, Gazp.

But first you need to learn two basic principles that shed light to the skill how to read the schedule.

1. Read graphics should be left right. Why? Imagine you turned on the channel where football is broadcast. Teams are unknown to you. You can not make a reasonable bet on the victory of one of them. Otherwise, it will be pure excitement, reading the schedule is a method of reasonable market judgment, in order to profit. Thinking player need to know - as teams (bulls and bears) previous matches played, what events occurred during today's game. This is the first principle to learn to learn how to learn to understand and read the graphs of the stock exchange - study the bars of graphics and candles as a story that develops in time from left to right and analyze the current situation in the context of the past.
2. You need to read graphics by analyzing the interaction of three independent parameters: the volume, time and price. Because the analysis of trader graphs is reduced to calculating the balance of demand and suggestions. And the demand for demand and suggestions, according to the same law, are expressed through the price (the vertical axis in the figure above) and the volume (number of transactions, horizontal). Consider reading the charts of volume and prices in time, the trader can see the change in the balance of buyers and sellers (reason), and take a favorable position in advance before the price starts to change (consequence). Traders currencies are asked how to read Forex charts if the broker does not provide data on real volumes? Answer two:
   - to replace these real volumes with teak volumes. Gavin Holmes, like other VSA experts, claims that teak volume gives out active. Namely, the activity of players - and there is a sense that is displayed in the amount of volume, teak or real.
   - Take the amount of volume with derivatives. For example, from the futures market. What we will do. Let's start learn to read Forex charts right now!

An example with a dollar and a ruble, or toak learn to read graphics for forex

This is a minute futures schedule for the ruble on January 27, 2016. The principles of reading the schedule to determine the input signal to the scalper transaction shown below are operating in all markets (oil, stock, gold) and on any time scale. Graph type - at the discretion of the trader. The Forex bars schedule does not differ from the Candle from the point of view of the trader reading it. This is a matter of taste, but most experts, starting with Richard Vaikoff, namely: Tom Williams, David Wece, Gavin Holmes and others - prefer to display bars on schedules.

1. After opening the market, the price has made Spring (deceived maneuver down, knocking down the foot of yesterday's bulls, and fascinating bears in unprofitable sales).
2. Wave of shopping, locking sellers in the minus. Green color on the histogram of volumes exceeds red - purchases occur at a market price, a bull sign.
3. Above the level of 80300 is SOT - Shortening Of The Thorust is a reduction in breakthrough. Each new High demonstrates an increasing increase in the price of graphics. A sign that bears have resistance. Fistened downward wave at 9:45 - additional drawing the confirmation.
4. Blue Arrow 10:16 Shows a candle on the schedule when the efforts of buyers did not bring growth. And most likely, reflected sellers encountered ASK and above 80250 (also, by the way, SOT)
5. Red arrow - a signal to the input in a short position. On the background, we have several bearish signs that are justifying shorts. And this candle with the prevailing sales volume may display the beginning of the descending wave. Short opens in the next 2-3 minutes, for example, 80100, with a stop 80250, and the goal of 79500 - the level where buyers showed their advantage by starting the morning ascending wave. Transaction potential: Possible loss 150, Possible Profit 600. Attitude: 1: 4 - good relationship for a deal with a high probability of success.

Check, when reading the schedule for Japanese candles, no indicators are used, only clean graphics of volume and prices are additionally noted only important levels.

Example with Gazprom shares, orhow to learn to read graphics on Quick Finam.

In contrast, traders who think what volumes to complement the Forex Bar Graph - Tikov, or futures, traders of stock markets are obtained in their terminal (in this example, Quick from the company Finam) official data of the MICEX on the volume of transactions performed.

Schedule 2. Schedule Shares Study of supply and demand. Gazp, 60m.

Pay attention to the behavior of the promotion per day marked with a red square. After a sharp rise in the price of the boost on November 12, 2015, the cost of the share Gazprom demonstrated a comparative force relative to the total market (thin bars on the chart) the next day November 13, 2015 - a bull change in behavior. In the morning, on Monday, a careful trader could open a long position on the Spring signal when the price dropped below the previous day's minimum. Another version of the entrance technique is to break the resistance with a growing volume.

If you are a currency trader, and you are more interested in how to read the schedule of bars on Forex, pay attention to articles with a tag. For traders stock market - Free video tutorials How to read graphs from Professional Investor Philippron.

Useful advice: To improve market reading skills, use a learning method that Richard Vaikoff offered. Close the right side of the graph with tight paper, and open it by shifting the paper to the right bar behind the bar. Fix your conclusions with each open bar. Learn to read the schedule, train your skill, and you will never regret it.

Hello! I really wanted to learn to understand and analyze the movement of certain valuable papers With the help of graphs.

What differ different types of graphs between themselves? What is Japanese candles? And linear schedule? The asset is the same, and the graphs are very different.

In trade on the stock exchange, the graphics are needed in order to display the main price parameters in a convenient visual format. Graphs often use traders who conclude many transactions within one day: when active trading, the decision on the transaction should be taken lightning, analyze data from the tables is simply inconvenient.

Dmitry Semin

adept of Japanese candles

But conservative investors are useful to be able to read graphs: with their help the investor can evaluate the yield and behavior of the asset in the past.

We will analyze graphics on the examples. Take data from the table and imagine them on schedules. different species.

With the table, everything is clear: all important data on price movement is indicated. We see how the price changed per day: at what value the trading session began and on what closed, which minimum and maximum threshold reached the price for the whole day.

Tables are convenient to use when you need to receive information on trading for a specific day: on Monday, the asset closed at a price of 55, and on Wednesday - at a price of 65. Minus: It is difficult to see the trend - how much the asset price is growing or falling. Perceive the direction and change price of the paper on the table can be, but it is more complicated than on schedule.

Linear graph

This format of the display of changes is perceived by the eye easier than numerical data and can visually show what happened with the price and how quickly it changed during the week.

By linear graphics, it is convenient to track the change in the time of some single parameter. Our table has four parameters - of course, you can show them all on one schedule with curves of different colors, but visuality will suffer from it. It is more convenient when the graph shows a change in some one or two parameters.

Candle graph

Candle graph - View of the graph with additional data on the price movement for the time period. If on linear graph We have portrayed the closure price, then all data from the table are visible on the candle graphics: the price of opening and closing trading, the maximum and minimum value Prices per trading session.

Two main types are distinguished in candles:

1. Growing - if during the formation of the candle the price has grown.
2. Falling - if the price decreased during the formation of the candle.

A candle, in which opening and closing prices coincide, sometimes allocate in the third type - dozh, on our schedule this candle is also there - on Wednesday.

Standard candles and bars are painted with two colors depending on the growth or falling price during the time interval. Green body means price increase, and red - drop. But the convenient color of the candles or bars can always be customized individually.

Shows the same parameters as Japanese candles. Difference only in the mapping.

Japanese candles look easier for perception, but the bar graph is still popular with traders in the West.

You can determine the price of price inside the bar on its "ears" - horizontal lines on his body. Left ear denote the price of discovery, and the right is the cost of closing the bar. If the left ear is higher than the right - the price fell and the bar will be red. If the left below - the price has grown, the bar will be green.

Why the investor needs graphics

Analysis of the past movement price by schedules can be used to make sure that the company is in order and the market confirmed it earlier. Or as an additional confirmation that you are not mistaken in the analysis of fundamental indicators.

But it is unlikely to use graph analysis as the only factor for making a decision on investing its funds. For comprehensive analysis, you can pay attention to other instrument indicators: risks, yield, practice and nuances of investments in a specific type of asset. Read our selections about investments to deal deeper.

When high-frequency ( HFT.) Trade conquers an increasing segment of stock operations, it may seem that man and standard strategies have no place in the market. In fact, this is not the case - even the most advanced mathematical algorithms can not do without tested methods, such as candle analysis Forex market.

The method of analyzing the dynamics of prices with the help of "candles" was developed by the Japanese trader Rice Honma Munekhisa In 1755 and for 2.6 centuries did not undergo significant changes and additions. They also described the main combinations of Japanese candles, which can be determined when the market turns out or continues the current movement.

From the point of view of Western methods, the candle confirms two basic principles:

• price (in our case, the candle) includes all factors affecting its formation, therefore additional analysis is not required (one of the principles dOU theory).
• the story is repeated And with the help of graphic patterns, you can predict the actions of the main mass of stock players ( theory of Chaos Elder, wave model Elliott).

The framework of the article does not allow detail all the models of graphic analysis, we will dwell only on the most simple and at the same time strong combinations of Japanese candles, which can be immediately used in trading even novice traders.

Turning candles

The main task of graphic analysis - log in Market And what is much more important close current positions as close as possible by the end of the current trend.So the reversal candle requires special attention.

The phrase "The reversal model (candle)" is not completely accurate. It seems that the direction changes instantly, but this behavior is rare. Relief, first of all, the change in the mood of the market crowd, for example, on growth after falling. It happens gradually, and on the chart it can be seen as a period of consolidation in a narrow range. Therefore, it is better to consider such candles only the first signal of changing the trend and open opposite transactions only when a new trend will receive a final confirmation.

"Hammer" and "hanged"

Candle data can be like bullish, so I. medneshy, depending on the current phase of the end - vertex For ascending or base For downward movement. There is no contradiction here, in technical analysis There are also similar "mirror" patterns, such as " Triple Top / bottom».

The bottom shadow of the candle should be twice the body, short upper or without it. White " hammer»It is stronger points to the uptrend, and black" hanged»Accordingly, downward.

When "hanged" is always waiting for an additional bearish signal, as this means that the price could not go above the local maximum, but the potential of buyers is still high. Therefore, the candle cannot be a final reversal signal on top.

"Absorption", "curtain from the clouds" and "clearance in the clouds"

Previous patterns were single price barsBut most of the signals of graphic analysis are a combination of Japanese candles, such as " Absorption»:

• there is strong Trend;
• the body of the second candle is more first and "Absorbs" her. Shadows may not be absorbed;
• the second candle of the opposite color. Exception can only be for very small first bodies similar to "Dozh".

In the process of analysis, factors should take into account the likelihood of a trend change after the absorption form:

• big difference between the bodies of the first and second candle confirms the end of the trend;
• reliability of reversal candle rises on long or very fast trends. If the trend lasts long, then large players calmly increase the deferred opposite transactions and unfold the price. In case of sharp movements, as on fundamental events, quick fixation of profits begins and the absorption candle appears.
• a few tel are absorbed.

"The veil of dark clouds" It can be considered an incomplete variant of bearish absorption, but the candle analysis believes that it does not decrease its reliability. We look at the black candle position - the more it "closes" the white candle, the more reliable the signal.

If the veil arises on tops, then "Luxury in the clouds" Foundation model. The opposite condition acts: the higher the white candle in relation to the first black, the closer turn.

If the second candles cannot provide a significant level of support / resistance, this means that the market is not yet ready for turn and it is necessary to wait for the development of the situation.

"Harrai" and "Cross Hari"

This candle is the exact opposite of the absorption - the body of the second candle should be completely (given the shadows) inside the first candle. If the Forex's candle analysis is considering absorption as a "lever" to turn the price, then this case, We are dealing soon with the "brake" temporarily stopping the movement. But, it is still a turning signal, especially if it appears on top.

The smaller the body, the more significant candle "Harmi" and it is logical to assume that when the discovery / closure prices coincide, this means a maximum of market uncertainty or "cross Harsh". What maximum size The bodies are considered the "cross" of the Forex market's candle analysis does not say, leaving it at the discretion of the trader depending on the specific asset. But it is recommended not to go beyond 2-3 points and look at the shadows - better if they are the same as possible.

Hari crosses can not be ignored! According to statistics, the candles on the vertices often lead to changing the trend than in the grounds. Therefore, it is recommended to close long positions regardless of the current profit / loss.

"Tweezers"

One of the few combinations of Japanese candles using shadow to analyze, not the body. Visually it looks like several maxima / lows of candles located approximately at one level. If the candles have formed simultaneously, as shown in the figure, "tweezers" will be an additional confirmation.

When several shadows are at one level, then most often it is the result of several unsuccessful retales of strong support / resistance, the breakdown of which is unprofitable to large players going to go against the trend. Perhaps behind him are the feet of their pending positions, and the potential for reversal is still not enough. Keep the candles on one max / min can both those who fix profits before the final variety of trend or trying to continue the movement. To understand who is behind the "tweezers" in addition to the graphic analysis, we look at the situation as a whole, especially for the fundamental background.

All models of the reversal must be accompanied by a sharp increase or decrease in market volumes. Sometimes they give a signal before the reversal candle appears, and it can cancel even a clear pattern.

Candles continue trend

In Japan, they say "there is time to sell, time to buy and relax time." Combinations of Japanese candles related to the continuation of the trend indicate precisely for a break in the price movement, after which the renewal of the trend is more likely than the reversal. Visually it looks like the appearance of a price schedule breaking or as the windows analysis is said.

Similar areas in which visually absent activity is well acquainted by traders. In technical analysis, they are called "GP" (GAP) and usually they appear on the opening of new trading sessions. Candle analysis Forex market claims that it is necessary to open positions in the direction of the window.

Before continuing the trend, there is always a period of rollback in a fully or partially "closing" window, with a fairly wide range you can try to open short-term countertrand transactions. You can also add technical analysis indicators and trade from the windows borders that work as support / resistance levels.

"Tansuka's gap" It is a more dynamic version of the "windows" - already the second candle can completely close it and resume movement. If the next 2-3 candles remain inside the tasuka, the signal is canceled.

"Rejection of adjacent white candles" and "breaking price maxima / minima"

Both combinations of Japanese candles are quite rare, especially the separation of related in the downstream market. If on the upstream trend it can be viewed as a stronger version of the "Tansuchian breaking", then there is no bull model on the descending order, just buyers decided to close some of the short positions.

Under the price maximum / minimum candle analysis implies not local extremum, and the period of brief consolidation on a strong trend followed by a window. Candles can form "tweezers" and the gap in the opposite direction confirms the continuation of the main movement.

"Three Methods" and "Three Coming White Soldiers"

The number is three assigned important role Not only in combinations of Japanese candles, and in Western Technical Analysis: "Triple peaks", three phases of the market (accumulation, distribution, climax) and so on. The reliability of the triple structures is confirmed by practice - double too unstable, and the fourth appear when the movement is almost over and the big profit is no longer possible.

In "three methods", after a large candle in the direction of the trend, you should at least three retractable, which should not go beyond her body . A small way out, of course, is allowed and if the next candle goes backwards in the direction of the main movement, we can say that the market has failed to expand.

Three consecutive white candles (soldiers) may appear both on top and on the basis, are a signal sustainable price increase. If on top of the second and third candle is too stretched in relation to the previous 5-7, then the market overbought is most likely. It is better to stay out of the market until a reversal combination of Japanese candles appears!

In the opposite situation, when the 2-3 candle is less than you can talk about the resistance of the sellers (a baked offensive) and may well appear "Hari".

Candles "Dozh"

This turning signal is so strong that is highlighted in a separate section. The principle acts here - the less often the Candle of the "Legs". It is more important and the most stable results are observed on timeframes from the M30 and above. At shorter intervals of the Doings, it becomes too much and they are practically useless to analyze.

At the classic log, the closure price is equal to the price of closing +/- a few ticks. But if there is little candle body, but still clearly visible, classic candle analysis works or not? There are no strict criteria here, it all depends on the average volatility of the asset. Sometimes even 2-3 points can be a normal situation. We also look at additional features, such as overbought / ocherism or intersection of moving averages.

In any case, the appearance of such a candle (even if false) requires detailed consideration, otherwise significant losses from the sharp change of trend are possible!

After a long white candle (on top)

This means that the potential of buyers is almost exhausted, and here it is important to understand that this candle does not mean that the balance of power really begins to shift in favor of buyers. Rather, the market is in the stage of indecision and oscillations. For adequate analysis, at least three next bars confirm the reversal or the beginning of consolidation are necessary.

On the descending trend, the accuracy of the signals of the rods is dramatically reduced, as well as virtually all of the options for Japanese candles. No matter how paradoxically looks like a price movement, you need to make more effort than for its growth. The case in psychology: most small and medium-sized players are easier to expect the start of correction or reversal than to continue to open for sale, pushing the price down mostly marketers. Even if a candle appears , Indicating the end of the movement, the asset may well "fail" to the levels of pending major Take Profit.

Therefore, dozh in the ground require more careful confirmation than on tops!

"Long-legged", "Ricksha" and "tombstone"

Both candles also point to the "tired" or as Japanese analysts "hitting out the way" trend say, but the situation here is somewhat different. If the previous pattern, pointed to the weakening of buyers, then a large upper shadow on the "long-natal" or "gravestone" runs about the purposeful efforts of sellers at the rising movement stop: the price goes up, but it comes to a significant opposition that returns it to the opening level. This candle on H1-H4 TimeFrames is especially strong.

Rickshaw appears when an attempt to expand the trend ends with a temporary truce between bulls and bears as evidenced by almost identical shadows and a small body. Professional traders Practitioners of the Candle Analysis of the Forex market even believe that Rickshaws can be viewed as a sign of the reversal, only if there is at least one classic romzh next to it, otherwise it is better to stay outside the market!

"Three stars"

The strongest reversal model of this group. It is almost never found in classic form, usually between the extreme "friends" are 2-3 multidirectional candles. Equally well is being worked out both on tops and in the grounds.

• Candle analysis of the Forex market is not suitable for everyone. Unfortunately this is the case. The trader should be able to recognize the classic combinations of Japanese candles at first glance and since they are almost never found in their classic form, the load on the visual memory increases, especially at low intervals with limited time for analysis.

But, immediately to fall into pessimism is not worth it: many methods of memorizing visual information have been developed, among which you can choose the one that is suitable for you. Even if you choose a "non-grief" strategy on indicators, market volumes or fundamental news without analyzing the position of the candles can not do.

• Candles cannot be the only decision factor. Perhaps 200 years ago it was not so, and it was possible to trade only on candle combinations , in today's conditions, you have to take into account many external technical and fundamental factors. Therefore, the figures indicate only the likelihood that the market will unfold or continue the current trend.

Beginners to study the candle analysis often act too template forgetting that on any trading asset the situation is never repeated with 100% accuracy. Candles that worked a year ago, in the current market can begin to give losses, therefore it requires constant control of the correctness of working out.

• Expand the set of trading tools. The article presents only the most basic and fairly simple combinations of Japanese candles, but their popularity has a reverse side. Yes, they attract the attention of most traders and often the situation when the figure "got out" to a classic look, although there are no external prerequisites for this. At the same time, the major players who can play against the crowd are followed. For example, seeing the formation of a candle "Dozh" on top or foundation, enter the big opposite volume and instead of the reversal we have a continuation of the trend with knocking out Stop Loss "s.

You can choose a cautious strategy, gradually increasing the position as the signal is confirmed or choose an equally reliable option - to trade more rare, but also profitable patterns, such as "three black crows" (reversal) or "separation" (continued). Since most traders are unknown or uninteresting, their stability is higher (especially on older timphroma).

• Control the term of "life" of the figure. The probability of the collapse of the combination of Japanese candles increases in proportion to the time of its existence on the chart. Especially if there are no strong events, then large players can begin to "rock" the situation, as in the periods of "silence" good profits not get. And the candles externally reliable patterns quickly turn into meaningless combinations. It is necessary to work out clear criteria for "deterioration" of the figure when you need to close the transactions regardless of the current profit / loss.

• Possess an excerpt. If you failed to enter the beginning or from the key point of the figure should not look for an input point where it really is not. It is better to wait for the correction and there to look for the opportunity to open a reversal deal. But always remember that the candle analysis most often provides for only one correction or rollback. . But the final choice must be made on the basis of the current situation and these tools.

Look for additional confirmation. Candle analysis should always be confirmed technical instruments, especially support / resistance levels. See the price movement of several timeframes, especially the availability of divergences and sharp changes in volumes.

Summing up It can be said that the scene analysis of the Forex market, despite the penetration of artificial intelligence in trading, will be relevant at least 10-20 years. Most of the participants of the exchange trades still make up people, and therefore his principles will continue to work and make profit.

Hello everyone!

Today we'll talk a little about large players, how to find them on the graph using the price and volume. And most importantly, how can it help us in trade. I immediately want to note, it is important to understand the basic essence and mechanics of the market, it will help you to build certain models and the trading system. Since, I believe in order to build a trading system, refine it and find working models, you must understand the pricing logic. And at the same time, we do not have to know from 100% probability that will be with the price. Any logic and model it gives only a probability displacement, but this is already enough to earn. At the same time, in most cases, we will not understand what is happening with many tools. The main task of the trader is not to try to analyze the asset on which there is nothing interesting, but to make the right sample and find a really understandable situation.

So, we turn to the examples on the charts. We will analyze several recent interesting situations that occurred in the market. Before analysis, I want to note that it is important to assess the situation in the complex. If there is an increased volume, in the sidewall, and we do not understand the overall picture, it is hard to make some conclusions. A set of position occurs in one case or unloading. Therefore, it is necessary to understand the overall picture, the presence of a trend, levels, and so on.

How to read graphics on the stock exchange? VSA and Price Action

As I noted in previous articles, here is the link, a set of positions a major player can occur in the sidework or from the boundaries of strong levels. It can recruit the position with limit orders, hidden Iceberg applications or due to various manipulations. For example, due to false breakdown.

For example, if the price is in the range, other participants traded onto the borders of the range and set the stops beyond the boundaries (example above). At the same time, the higher quality level and the longer the price has happened, the stronger the impulse on the test, due to the stops of the stops. If there were many false breakdowns or punctures at this level, the subsequent impulse in most cases will be weaker due to the fact that the feet were removed. This moment can be used in scalping when we catch not all movement, but a sharp pulse. Therefore, if you correctly find a strong level and it will be confirmed by a large density, you can earn it. Yes, such situations will be infrequently, but personally my task, find the highest quality signals and models. It happens that I sit and 3 days without deals. If you try to always be in the market, then you most likely merge.

It is not always a false breakdown or a strong puncture will weaken the level. Yes, in most cases at such a level there will be no strong pulse on the breakdown. But at such a level you can find a good trend point. Not always dynamics and activity from the side of buyers are enough to move the price right away. It happens the price breaks the level, the stops are taken, but at the same time the price roll back to the level. And when repeated, the test begins upwards. If the tool was redeemed, and it was able to gain a top of the level, then in this case you can also search for a purchase point. Especially if there was a level care, then the redemption at high volumes, which again can speak about the interest of a large player.

Take an example on Rossetia. In one of the articles, I have already described this situation. Here is the link . Here, a major player prevented the position by shaking other participants (the screen above). After this false breakdown began a strong movement upwards.

Next, we see a rollback on the declining volumes (which indicates a decrease in interest in this instrument), then re-redemption with an increase in volumes (renewal of interest) and level breakdown. It is a breakdown that is a confirmation that interest is maintained to the instrument. On this test and you can search for a purchase point. Next, we see rollback and retest of this level. At the same time, the retEST passed the volume and was puncture with a sharp redemption. This also suggests that interest in this asset is preserved. This level Gives a good shopping point with a short stop.

More detailed analysis Schedules with additional examples and input points, see the video below from 2 minutes. All pleasant viewing.

Sincerely, Stanislav Stanishevsky.

The generally accepted method of displaying the movements of price courses around the world are Japanese candles. The usual schedule in the form of a solid line is not able to tell so much about the current state of the market, player sentiment. At first, the Japanese candles are difficult to perceive enough, but over time, their use becomes very convenient. There are many variations on what indicators to use in the trading terminal to determine the price trend. In fact, to understand how to read Forex charts, you need to learn the simplest - analyze Japanese candles.

The appearance of Japanese candles can be configured so that different time intervals are displayed. For example, if the trader selects a clock graph, then each candle on it will show a change in the course of a certain financial instruments over this time. In the first case, we see a white candle. The body of the candle is called its part between the "Close" and "Open" levels. What is located below and above body shadows. At the selected time interval (for example, there is a clock period or H1) dominated by bulls, that is, an upward trend was observed.

At the beginning of the hour, the price was at the level of Open, and closed at a higher price at Close level. It is also seen that at some time the course fell below the opening and rose higher than the level of Close, but to judge when this was what happened, it is possible only when considering younger timeframes.

So, the bull candle is painted in white. The second candle in the drawing is black, bearish. At this time interval, the market was a downward trend. In the size of the body, you can judge how tangible was the advantage of forces in the market. In this case, the body is large enough, it means that the bears on the market was much more. At the beginning of the hour, the price was at the level of Open, and at the end - at the level of Close. Some moments she reached HIGH and LOW.

How to determine the dominant trend in the market?

Many traders in search of a response to this question use a variety of indicators that often only become decoration. trade Terminal And distract from the most important. Such a method is suitable only to experienced traders who work according to certain methods and well understand the principles of construction, as well as strong and weak sides Applicators used. The newest method of determining the trend is suitable for beginners. It became aware of it more than 100 years ago from the theory of Ch.Dou.

Dow spoke, each trend is accompanied by a kickbacks of various power. On the presence of a rising trend can be judged if each subsequent decline is located above the previous one. The same applies to the descending trend: each next peak must be lower than the previous one.

"External bar"

Below are the combinations of candles that signal the possible reversal of the market. In both cases, the candle with a large body is called an external bar. The bullish setpie signals the possible continuation of the movement of the price course upwards, bearish down. The figure below shows two bullish setup within the ascending trend. Although setapa and were given as reversal, they can be used to open trend transactions. As can be seen from history, timely identification of signals could bring good profits.

Three candle

A rather popular and frequently found on the schedules of various tools pattern consists of three candles. It is usually formed after rapid trends and signals a possible reversal. If we talk about bullish setup, then the first candle is bearish and has a fairly large body, which indicates the presence of a strong trend in the market and the predominance of bears. After that, one more candle follows which the closure level is below the opening. However, in this case, the body in the candle is completely small, which may indicate the weakness of the trend. Next is the "confident" bovine bar, a trader can open the BUY order.

Figure below shows two bullsets. As can be seen, a new minimum was formed within the first setup, after which the bull candle formed with a large body. It is also noticeable that the subsequent movement is long and fast.

Let's summarize

This article coveted how to read Forex charts, and to do this in the minimum time. Of course, you can use a variety of indicators, but the most simple and at the same time an effective method is an analysis of Japanese candles. Of course, the forecasts made in accordance with the candle analysis do not have 100% accuracy. Other popular tools can be used as a filter. Nevertheless, the effectiveness of the analysis of Japanese candles is recognized by thousands of traders from around the world.

We offer to familiarize yourself with the useful video on the topic of the article.

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