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Hello…folks in this article. I am going to share with you one of the easiest ways to read Candles while trading in Olymp Trade.
This article will be a cheatsheet basically, and I bet no one is ever going to share with you this easy trick on How to Read Candlestick Easily.
What is Candlestick?
Candlestick is a graphical representation of the price movement of stocks, commodities, & more.
The chart is said to be developed by Munehisa Homma, a Japanese Rice Trader.
However, the chart was introduced in the western world by Steve Nison, when he wrote a book name Japanese Candlestick Charting Technique.
Japanese Candlestick Olymp Trade
The most common questions that I have been asked about Japanese Candlestick Olymp Trade is Which your favourite Olymp trade Japanese Candlestick Strategy. Well, I will cover that even.
But, Firstly, I will teach you How to set Candlestick in Olymp Trade? , or How to change chart type in Olymp Trade?
The First and foremost step is to Login to your Olymp Trade Account. If you have don’t have one Create one here or visit this guide.
You can also fill the form below for quick sign up
You can sign up from the form here…try..
After you have signed up with Olymp Trade now, you will land to the Olymp Trade dashboard.
Now, click on the Chart button. and you will land to the Candlestick Chart. which will look something like given below.
That’s it the basic setup is over!!!
Different types of Candlesticks
The candles are commonly formed as High, Low, Open, & Close.
There are basically 2 types of Japanese candlesticks:
The basic funda of Candlestick says:
If the opening price is above the closing price then a RED or SELLER Candle is formed
Similarly, If the Closing price is above the Opening Price then a GREEN or BUYER Candle is formed.
To understand this more clearly, let me tell you an example,
Suppose, The price of Rice today is 20 Rs per kg which is more than yesterdays price which was 17 Rs per Kg.
Now, If you are an intelligent seller you will get excited and try to SELL more & more and thus Bearish Candle or SELLER Candle is formed.
Similarly, Suppose, The price of Rice today is 20 Rs per kg and the next day the price drops down to Rs 16 per Kg.
Now, If you are an intelligent Buyer you will get excited and try to BUY more and more. thus a GREEN Candle or Bullish Candle (BUYER Dominated Candle) is formed
How to read Candlestick Easily?
Now, In this section, I will teach you the easiest Cheatsheet on How to read Candlestick Easily?
I bet no one will ever teach you this easy trick.
Firstly, note these important points before we begin:
1. Each Candle represents a fight between BUYER and SELLER.
2. BULL: means GREEN or BUYER
3. BEAR: means RED or SELLER.
4. Longer the body more is the clarity
5. Longer the wick more is the confusion.
Okay, now I hope you have noted everything. now look at the images below.
To be honest there are only three Common Candlestick Patterns.
1. Small Wick with Long Body
Now, look at the candlestick pattern above. and look at the important point no.4 what it says is Longer the body more is the clarity.
This means, that either the BUYERS or SELLERS are really confident therefore a strong candle is formed.
If this type of RED Candle is formed it indicates SELLERS domination and vice versa.
2. Small Wick with Small Body
Now, look at point no. 5 What I have said is Longer the wick more is the confusion.
This types of candlesticks suggest that there is some confusion between BUYERS and SELLERS the Candlestick Strategy or Color Strategy says we should be careful during these types of candlesticks.
3. Long Wick with Small Body
Last but not least is Long Wick with Small Body, Now, look at point no. 5 What I have said is Longer the wick more is the confusion.
Similarly, This pattern indicates the confusion or wild fight BUYERS and SELLERS the Candlestick Strategy or Color Strategy says there could the end of either Uptrend or Downtrend.
This basically signals the change of trend.
So, this is the end of this article. I hope you have found this article helpful.
This article was all about How to change chart type in Olymp Trade, How to use Japanese candlesticks in Olymp Trade, How to change to Candlestick on Olymp Trade.