How to use chandelier graphics for effective commercial analysis
Chandelier graphics have been a must for technical analysis on the financial markets for decades. These visual representations of prices movements and trends are widely used by traders, investors and analysts to analyze market behavior and make informed commercial decisions. In this article, we will immerse ourselves in the world of chandelier graphics and explore how to use them effectively for commercial analysis.
What are the chandelier diagrams?
Chandelier graphics are a type of technical table that shows high, low, open, close and volume prices (HHLVO) for a specific actions or assets over a specific period. These graphics are created by drawing horizontal lines at key levels on a grid, which represents the movements and price trends.
Types of chandelier diagrams
There are serious types of chandelier graphics that traders use to analyze market behavior:
- Simple candlestick charter : a basic candlestick graph with five main candles (backwards, firmly, open, high, low) and no additional information.
- Intraday Candlestick Chart
: A graph showing prices for a specific negotiation day, including the five main candles.
- Time table of the candlesticks : A graph showing the action of prices for a single hour of negotiation, with five main candles.
- Daily table of candlesticks : A graph showing the global market trend and volatility over a period of 24 hours.
How to read the chandelier graphics
Reading chandelier graphics requires some knowledge of basic technical analysis concepts, such as:
- Identification of trends : Look for price action trends, whether it is an upward or downward movement.
- Support and resistance levels : Identify the key support and resistance levels that can influence the market.
- Volume analysis : Consider volume data on the graph to assess the feeling and momentum of the market.
Effective analysis of candlelight graphics
To effectively use chandelier graphics for commercial analysis, follow these steps:
- Identify the type of graphic : Choose a type of graphic that suits your trading strategy (for example, intraday or daily).
- Analyze the graph : Look at the candlestick model and try to identify trends, supports and resistance.
- Look for models : Identify all recurring models, such as waves, triangles or corners.
- Use technical indicators : Consider using technical indicators, such as the Mobile or RSI average, to improve the analysis.
- Consider market conditions : Take into account market conditions, such as news events or economic versions.
Examples of the Chandelier graphic
Here are some examples of chandelier graphics used for trading analysis:
- A bullish graph showing a long -term trend and a high volume on the daily table of candlesticks:
`'
+ -------------- + -------------- + ----------------------------------------------------------- +
| H | L | O |
| 10-13-2023 | 20-23-2023 | 25-28-2023 |
+ -------------- + ---------------- + ----------------------------------------------------------- +
'
- A lower graphic showing a short -term trend and a low volume on the daily graphic of candlesticks:
'
+ -------------- + ---------------- + ----------------------------------------------------------- +
| H | L | O |
| 15-18-2023 | 25-28-2023 | 30-33-2023 |
+ -------------- + ---------------- + ----------------------------------------------------------- +
` ‘
Conclusion
Chandelier graphics are a powerful tool for merchants and investors to analyze market behavior and make informed commercial decisions. By understanding the different types of chandelier graphics, identifying key models and using technical indicators in conjunction with graphics analysis, you can develop effective negotiation strategies that help you succeed on the market.
Remember that candlestick graphics are only part of a complete trading strategy.
