What Do XAUUSD Candlesticks Mean in XAUUSD?
Candlesticks Meaning
Candles are types of chart used in xauusd. Candles charts provide an array of xauusd about price movement.
For example, candlesticks have different colors to differentiate the price movement for a particular candlestick. For example:
When price moves up - green candlesticks or blue candlesticks or white candles are formed
When price moves down - red candlesticks or black candles are formed
The candlesticks will also provide the following information about price movement - OHCL
Opening
High
Closing
Low
Opening will show where the price opened for a particular candlestick
Closing will show where the price closed for a particular candlestick
High will show the highest price for a particular candlestick
Low will show the lowest price for a particular candlestick
This information will then be used by traders to analyze the trading movement based on this OHCL information provided by the candles.
The candles look-like a candlestick with wicks on both ends
The body of candle represents the price movement between the opening price & closing price of a particular gold candle.
The wicks which are also referred to as candlesticks shadows represent the High and the Low of the price for a particular candle.
Candlesticks formations will form different patterns:
For example long body candlesticks will show that prices made a big move between the trading opening price & the trading closing price and this can be interpreted that the prices had a lot of momentum and there were a lot of buyers or sellers depending on the direction and color of the candlesticks.
For example, -
Long candlesticks that are blue or green in color means there were a lot of buyers as prices made a big move upwards
Long candlesticks that are red color means there were a lot of seller as prices made a big move downwards
Long XAUUSD candles wick or long candlesticks shadows will mean that one side moved prices in one direction a great deal but this side was not able to gain control of the market because the price were then pushed back in the other direction - therefore this made the long wick candlestick setup.
For example, -
A long wick upwards means that buyers really pushed the price upwards but the buyers did not gain control of the market as the prices were then pushed down by sellers and the price then managed to close much lower from where the buyers had pushed it to.
A long wick downwards means that sellers really pushed the price downwards but the sellers did not gain control of the market as the prices were then pushed back up by buyers and the price then managed to close much higher from where the sellers had pushed it down to.
With different candles pattern setup there are different analysis of these candlesticks setups
Each setup has a different interpretation & each setup gives a different signal.
Traders should learn and understand the various different candlesticks patterns setup and how to interpret these candlesticks setups to generate signals using candles.
What Do Candlesticks Mean in XAUUSD? - What Do XAUUSD Candlesticks Mean in XAUUSD? - What Does Candlestick Mean - What is the Meaning of a Candles - Candlesticks Meaning - Candlestick Definition
