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Tale of the tails
Thu, Sep 4 2008, 08:37 GMT
by Forex Journal's Collaborators
This article is taken from the Forex Journal (July 2008 issue).
The author, Brandon Wendell, is a member of the Market Technicians Association, the Chartered Financial Analyst Institute, and now holding the Chartered Market Technician Designation, Brandon has appeared as a guest on CNBC Asia’s Cash Flow and conducted special seminars for CNBC staff on technical analysis. He has published articles in The Trader’s Journal Magazine and was interviewed in Share Investor Magazine.
- Brandon Wendell reminds us to pay attention to the 'wicks' and 'shadows' that yield valuable clues when analyzing candle charts.
In this article, I decided to discuss a simple technique that is often overlooked when traders are reading charts. We are all too quick to look at the squiggly lines that we call indicators and oscillators and dismiss the simplest signal available to us. At simple signal would be 'Price!'
Price is most commonly displayed for most traders through candle charts. If you are not familiar with the construction of a candlestick, I have included the quick reference below. A green candle usually indicates strength in price and is formed by price closing higher than it opened during that particular time period. Conversely, the red candle indicates weakness due to the closing price being lower than the open for that period
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Published on Thu, Sep 4 2008, 08:37 GMT
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