Bars, candles, and charts. Before we get into anything else, and “were just gonna” do a lot more map stuff later on, I wanna, before we go any further, it’s gonna be important that we just talk about these basic three things. Barrooms and candles are the route that generally merchants will express rate on their charts, and we’ll take a look at that in just a second. And maps are the place where we expressed the view that. Most currency merchants are technical merchants, which means we take a look at these maps, we take a look at the screen, and where reference is take a look at the screen we, I don’t want it to be blue, alright great.
So, most traders will pull up a chart like this and perhaps they are able to color the background. I think we have a black background one too don’t we Nate? -[ Nate] We should yes. – We should have one but I don’t where it is. Well, we’re gonna take a look at it here. This is a chart that we’re looking at right now. And on the following chart are candles, which we’re gonna look at and I made the colors incorrect and I want to change this before we proceed. There “theres going”, okay excellente. This is a chart, I think you probably already was well known that but I was just inducing sure.
( laughter) This is the canvas on which cost is painted. And from which we make our decisions. Most merchants are technical. Some merchants don’t look at any of these charts and simply focus on the mentions or economic stuff or whatever else. But 99% of all FX traders are gonna be technical analysts and technical merchants. Necessitating they’re gonna look at a chart and they’re gonna sizing things up on the following chart. Your maps in the world of currency trading are going to be made up of barrooms or candles in most cases. Candles look like this. That’s what a candle consider this to be. It’ll have a body in the middle and then a darknes or a wick on either demise. You can have candles with small bodies or no bodies and long wicks. Or you can have candles with long the organizations and virtually no wicks or anything on them. You can have candles that are darkly colored inside which means they’ve been moving down. Or they are able to have candles with light colours on the inside which generally mean that cost has been going up. If we go back over here to our charts, you an see this pretty good.
The black backgrounds with no interior, those have been moving up and the lily-white background or the filled in candles which are white in such a case, have been moving down. And your charts are going to be freely alterable by you. Meta Trader allows you to change the colors of these things. You can have yellow-bellied, white-hot, dark-green, all kinds of different colours. You could change the background of your maps to be pitch-dark. They say that darker background charts are easier on your eyes when you’re looking at charts for long periods of occasion. That’s just a little side note. Now some merchants don’t like to use candles, they like to use barrooms. And bars are going to look like this. So I’ll move up here a little bit. And a bar is gonna look like this.
It’s gonna have an open and a close area and wicks or darkness or whatever they’re called. And I don’t use these at all. But if you like to or want to you can use those. They either end up or they objective down and so on and so on and whatever else. On a bar chart, the little nudge that stays out to the right is the closing price. The little nudge that lodges out to the left is the open rate. And then this is the low-pitched that it reached and that’s the high that it reached. Those are saloons and candles. We’re gonna talk a lot more about analyzing material or taking a look at these things later on. But that’s what a barroom or a candle is. Now a barroom or a candle on a map, represents a certain, excuse me, sorry about that. A specified period of time. A specified period of time. So each candle, I use candles, but I don’t care I don’t care if you do like them or don’t like them. Each candle on your chart will represent one period of time.
It could represent one minute, 1M or sometimes it looks like M1. It could represent one hour or hour one. Some people will call that a 60 time chart. It could represent one day or on some maps D1 or a few months, one minute, ten minutes, five minutes, and so on. Inside of Meta Trader which is the largest, the most widely used platform. At the top of the charts in this area up here, we could change from M1 to M5, one minute to five minute. That means that every single one of these candles represents five minutes of occasion. Or we are to be able switch it to a 1 hour and every single one of these candles represents one hour of occasion. Or we could switch it to a one week chart and each one of these barrooms or candles represents one week of hour. Alright, that’s just the basics on loadin’ up your charts and lookin’ at saloons and candles.
And it’s gonna be important’ cause in the next lesson we’re gonna talking here long-term versus short-term trading. I’ve been short all my life. Thank you to Forest Park FX for sponsoring these videos. If you’re interested in FX trading, contact Forest Park FX to receive currency back rebates on every commerce you place and open a trading report. You can go to forestparkfx.com. Remember .
As found on Youtube
