Candlestick pattern
Candlestick formations or patterns help you in the buying or selling decision of stocks or indexes. Candlesticks are a very valuable tool for timing - entering and selling the market. Candlesticks consist of a candle body and the wicks, the thin strokes above and below the candle body.
The body is calculated from the difference of opening and closing quote. If the opening market price lies under the closing price a white, positive candle body is used. In a day with losses a black candle body is used. The wicks arise from the differences of the highest or lowest market prices to the candle body. They are marked above or below the body. The following illustration illustrates the principle:
Roughly Candlesticks are categorized in bullish and in bearish candlesticks. DAGOBERT-DACHS identifies the most important and best known Candlestick formations:
Candlestick formations are also used for development and testing of tradingystems. Click here to get more information about the tradingsystem functionalities of DAGOBERT-DACHS.
