/biz/ - Business & Finance

>>56263965
you don't

>>56263965
actually you can read them

but that's much different from predicting the future

>>56263965
lmao this is literally astrology for finance bros

>>56263981
Don't insult astrology like that

The wick is the highest and lowest price within the time period and the candle bar encompasses the starting and closing prices within the period. The bigger the difference between the opening / closing price and the high / low then the longer the wick. If the closing price is higher than the opening price, the candle is green, if vice versa, the bar is red.

That's literally it.

To give an exampe:
Say at the beginning of the day, someone trades a stock for $100. Then throughout the day the price dumps down to $90, then explode to $150 and finally the last trade of the day it goes for $120. So on the daily chart you'll have a short green candle with a really high wick above and shorter one below. If you decide to check different time frames, then you'll see a bunch more candle reflecting the price action within those time frames. Usually the relative length of the wick to the candle is proportional to trading volume and volatility, whereas huge bars with short wicks indicate low volume and either a whale slurping or dumping his bags.

These are nothing more than suggestion to when the markets pivot.

They do better in Forex and crypto, but not so well in stocks. They are also easy to remember if you give them enough use.

They are astrology in the finance world. I can't even suggest which ones actually work because most of them are stupid, but technical observations.

I've seen reverse H&S work, double bottom works, and you will find them on the 1 hr to 30 min. timeframe. Wedges also work and try following a rising wedge on the 5 min. This does not suggest valid entries are found after wedges rise and fall. That part of managing risk is up to te investor and involves predicting what time the markets will be valid to enter.

Ex. 2:00 AM on a Saturday is when 'we should all short' by my entrepreneurial ability to take risks and make decisions.

>>56264048
this guy gets it

>>56264062
the ability to flip time frames and quickly see if a majority of them show the same direction and signaling is a big reason people use the candle sticks vs other indicators

>>56263965
Step 1: open up any chart of your choice
Step 2: look back at historical price action and identify times when a bullish candle formation resulted in a bearish outcome
Step 3: Understand that TA is quackery.

>b-b-but it's not supposed to work everytime and that's how you know it's working! It's a nuanced issue!
K, then why do I need your magic candles, which are supposed to eliminate the subjective factor in trading in the first place, when I can already just place buy and sell orders at price points that I decide to based on gut feeling or twitter rumors or on-chain whale activity? All of these methods are no where near >50% accurate. And yet they are just as reliable as TA.

>>56263965
you should look into a company's fundamentals instead of its trading history.