CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.78% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money before trading CFDs.
Technical Analysis
What are bars and candlesticks?
A chart is a graphical representation of historical prices. The most common chart types are bar charts and candlestick charts. Although these two chart types look quite different, they are very similar in the information they provide.
Bar and candlestick charts are separated into different timeframes. Each bar or candlesticks represent the high, low, open and close price for a specific period of time.
Why are bars and candlesticks important?
Technical Analysis includes the study and mapping of trends and price patterns through various technical indicators or studies. This relationship between price and time can help traders not only see and interpret more data but can also help pinpoint areas of indecision or reversal of sentiment. As a result, technical analysis is used to help determine the probabilities entries and exits in order to develop a strategy or methodology.
Example 1 – Candlesticks
Bearish candles are typically red. It means the opening price was higher than the closing price for the specified time interval. Bullish candles are typically green. It means the opening price was lower than the closing price for the specified time interval.
Example 2 – Bars
Bearish bars are typically red. It means the opening price was higher than the closing price for the specified time interval. Bullish bars are typically green. It means the opening price was lower than the closing price for the specified time interval.
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