Hi guys,
First post here on FF! Man am i glad i bumped into you guys!
Im trying to understand candle stick charts and am unsure if my understanding is correct or not.
If possible, could you guys let me know if im right or wrong in assuming the following...(beware, Very basic)
1) Reading Candlestick Charts is a way of analyizing previous days performance of traders in conjunction with the highs and lows of the exchange rate for the day?
2) From this we can expect what will happen today?
3) Open and Close is where majority of traders opened and closed there positions?
4) High is where the currency was at its highest price for that period of time, wheras the Low is the lowest price of currency at the given time period?
5) "Candlesticks with short shadows indicate that most of the trading action was confined near the open and close." - so this means that traders took good advantage of the increase/decrease of the exchange rate for that period of time?
6) "Candlesticks with long shadows show that trading action extended well past the open and close." - This is opposite of point 5? Traders were unable to take advantage of the rise/fall of the currency? If so...why would this have happened?
Thanks for all the help guys. I may be late with my reply cuz i have work now so please dont mind if i dont reply too quickly.
Cheers!
First post here on FF! Man am i glad i bumped into you guys!

Im trying to understand candle stick charts and am unsure if my understanding is correct or not.
If possible, could you guys let me know if im right or wrong in assuming the following...(beware, Very basic)
1) Reading Candlestick Charts is a way of analyizing previous days performance of traders in conjunction with the highs and lows of the exchange rate for the day?
2) From this we can expect what will happen today?
3) Open and Close is where majority of traders opened and closed there positions?
4) High is where the currency was at its highest price for that period of time, wheras the Low is the lowest price of currency at the given time period?
5) "Candlesticks with short shadows indicate that most of the trading action was confined near the open and close." - so this means that traders took good advantage of the increase/decrease of the exchange rate for that period of time?
6) "Candlesticks with long shadows show that trading action extended well past the open and close." - This is opposite of point 5? Traders were unable to take advantage of the rise/fall of the currency? If so...why would this have happened?
Thanks for all the help guys. I may be late with my reply cuz i have work now so please dont mind if i dont reply too quickly.
Cheers!