What is candlesticks how to trade with help of candlesticks

Candlestick is very popular in the entire world for trading. With the help it, we can make our lives hood. The candlestick is not a big deal. The candlestick is also known as a Japanese candlestick, it is used to measure the price of the stock and different types of assets in the market.

Every candlestick has its specific time frame period like day, hourly,minutes. The candlestick shows the price of the interval as open, high, low, and close.

The body of the candle represents its opening and closing price and its shadow represents the candlestick’s low and high. If the candlestick has a green color it indicates the closing price is higher than the opening price. In the s,ame way if the candle has a red color that means the closing price is lower than the opening price.

In the bullish candle we can see the price is rising and in the red candle the the price is falling to the downside.

The candlestick chart is mostly used for technical analysis. It also helps find chart patterns, trends, and price movements, and it’s also helpful for the future prediction of the market.

Why candlestick is Important for trade

We know very well without the candlestick any type of trader can’t survive for a long time in the market. The candlestick provides very precious information to traders about the market like trends, price movements, and strength of the market.

In other words, the candlestick chart has some basic information about opening, high, low, and close.

The candlestick has the biggest advantage for the trader. With the help of the candlestick, traders can spot the trend, support, and resistance. On behalf of the support level, the trader can take the trade. The trader can play until the resistance level.

On the resistance level, the trader can sell at the top of the market level. And Traders can sit until the support level in the market.

One of the other amazing advantages of the candlestick. Do know you about the trend lines? Trend lines are very important to measure the trend market movement. With the help of a candlestick, you can draw the trend line and also you can identify the level for drawing it.

The trendlines are connected by a series of higher lows and lower highIt is help to find the direction of the trend. It also helps to become more productive traders.

How to trade with candlesticks

Trading with candles involving analyzing the chart making take an informed trading decision by the trader. The analysis is very important to do for the trading. If you aranalyzingsis in the market then maybe you will able to take the trade.

The candlesticks nowadays is very popular. Most traders are using it for their trading routine. Here are some useful steps by using it you can able to take in the trade.

• First, learn how to read the candlestick chart- Before jumping into the trading career you must know how to read the chart and analyze it. Candlestick chart has many chart patterns like bullish and bearish. Candlestick reading is not hard but if you are totally beginner then maybe it’s hard.
• Identify key support and resistance levels- traders should identify support and resistance levels in the market before entering the trade. Support and resistance levels help you where to enter and when to exit from the trade.
• Use candlesticks pattern to make trading decisions- always keep your eyes on the candlesticks chart pattern. When any chart patterns are formed against your trade they jump out from the trade. It also helps in the market movement change. You can predict it before the change in the trend.
• Combine candlestick analysis with other Indicators- Candlestick is not one method of analysis. It’s also a mixture of indicators. With the help of the Indicators, you can improve your analysis. Indicators such as moving averages, or oscillators.
• Practice with paper trade- It is the most useful part for every trader. After spending some time in the market to identify the candlesticks chart then you must practice it with paper trading.

Chart reading is not a cup of tea. It’s very easy to do.