When analyzing price movements on your trading charts, understanding the amplitude of candlestick patterns can be a game changer. Let’s break down the key components of candlestick analysis that every trader should know:
- Whole Length of the Candlestick (High - Low) - represented by a red solid line. This shows the total price range during a trading period.
- Body of the Candlestick (for a bullish candlestick = Close - Open) - indicated by a green solid line. This reflects the price movement between the open and close of the candle.
- Sum of Shadows (for a bullish candlestick = (High - Close) + (Open - Low)) - displayed with a blue solid line. It represents the total length of the upper and lower shadows combined.
- Upper Shadow (for a bullish candlestick = High - Close) - shown as a blue dashed line. This highlights the price movement above the candle body.
- Lower Shadow (for a bullish candlestick = Open - Low) - also depicted with a blue dashed line. This illustrates the price movement below the candle body.
To optimize performance, only the last DrawBars of the bars are displayed, which helps in conserving resources on your trading platform.
Understanding these elements can significantly enhance your trading strategy and help you make more informed decisions. Happy trading!
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