Candle Stick Price Action Trading
How to Interpret Price Action Trading Using Japanese Candles
The Japanese candles techniques also have very many xauusd price action pattern formations that are used to trade Gold. These xauusd price action patterns have different technical analysis interpretation & the most common are:
Inverted Hammer Candle Pattern & Shooting Star Candle Pattern |
Piercing Line Candlestick Pattern & Dark Cloud Cover Candle Pattern |
| Morning Star Candles & Evening Star Candles |
The above gold trading action xauusd price patterns is what makes the Japanese candlesticks popular among technical gold traders & it is why this type of xauusd price action xauusd trading analysis are the most widely used when it comes to interpreting the gold trading market. The technical analysis for these xauusd price action gold pattern formations in gold trading is explained in the above gold candlesticks xauusd price action guides.
What is a Candlestick?
Candlesticks - is a xauusd price representation that uses the xauusd price data (open, high, low, and close of xauusd price). These candlesticks resemble a candle with wicks on both ends.
The rectangle part of the candlestick is called the body.
The high and low are described as shadows & drawn as poking lines.
Candle Stick Price Action Trading
The color of the candlestick is either blue or red
- (Blue or Green Color candle) - Prices moved up
- (Red Color candle) - Prices moved down
Most gold trading platforms like the MT4, use colors to mark the direction of the gold candlesticks. Colors used are blue or green: when price moves up, red: when price moves down.
Candlesticks Price Action Chart Vs. Bar Charts - Candlestick Price Action Trading
When candlesticks xauusd price charts are used it is very easy to see if the xauusd price moved up or down as opposed to when bars are used.
Gold Trading candlesticks and xauusd candlesticks patterns are commonly used in xauusd price action trading strategies used to trade gold.
