Questions From Readers
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>1. How to analyse the sentiment and psychology of a candlestick With respect to >candle Open, High, Low , Close, upper wick & Lower tail and the closing range ..
>please explain sir…
candlestick do not consider upper wick & Lower tail .
so analyse the sentiment and psychology candlestick color continuation.
if close price higher than open price candlestick charts draw bull candlestick.
if 2 bull candlestick appears that psychology means strong.
if close price lower open price candlestick charts draw bear candlestick.
if 2 bear candlestick appears that psychology means weak.
so we have to watch bull candlestick continuation.
same candlestick color continuation.
>2. Is there any secret behind candlestick formation: pls have a look at the attachment >image… in Forex every candle opens at close price (except some)…
>whats the significance?
>and difference in both scenarios along with the body size and wicks and tails…. how >to understand the price behaviour…
There is no difference Scenario 1 & 2 both of them same logic.
Scenario 1
3 = 1 to 2 lower close(outside close)
4= 2 to 3 inside close
Scenario 2
3 = 1 to 2 upper close(outside close)
4= 2 to 3 inside close
significant things inside or outside.