What’s going on folks?! Im sitting over here with half a white russian and a bag of Pre-1982 pennies, do you know why? Not because I’m commemorating the former Soviet unions fall in ’91. I’ll tell you why, because COPPER thats why. Copper, Cu, #29 whatever you want to call it. Gold, Silver and COPPER.. Make the world go boing..boing.. boing, that’s right.. Round and round. =) Money runs in the reserve and treasury. The circulation of most legal tender today is fiat, which means if i believe this is worth “ONE” legal tender and the government dictates so it upholds itself. Why the Pennies Nick? Have you LOST your mind? No folks I’m still with you, still here. =) (Most are half-asleep by now Haha)
Money runs on ideology, and a faith system. A bit off-topic but belief is CENTRAL in all business and in the general scope of anything in relation to humans and societies function as a whole. We are raised to TRUST and to BELIEVE to ACCEPT and let it be. Now i’m no psychologist, or philanthropist but i will say this, you have a choice. Some choose to go with the flow and allow the rivers to lead to the ocean, yet the ocean is never filled; nor will it EVER be filled. Just some food for thought. Now onto our lesson in finance.
Candlestick’s yep folks, candlesticks… What does that mean Nick? Well candlesticks are the following, an actual system developed in the 17th century A.D (for those you like to question fine details) by a rice farmer by the name of Homma from the town of Sakata in Japan. ( Just a bit of an intro) Now this system was created for the sole purpose of data documenting and analyzing. This works WONDERS with Forex. ( Will add a Candlestick Formation chart key below) and its basically what the market uses as a base measure and data collection hub.
A candlestick contains several factors, those would be the following “wicks, body’s and tails” These mark the open’s, high’s, low’s and close’s. There are simply values for each period you want to see. The rectangle part of the candlestick is the “body” the markings ABOVE and BELOW the “body” are highs/lows and respectively wicks/tails. The next factor is called a “shadow” this is a marking form. If say the Euro closes higher than it first came up, say it started at 1:0.69 D/Euro Ratio, and closes at 1:0.73 D/Euro the marker will be on the “wick” or “top” sitting at 0.73 and “below” the body or the “tail” will hold a 0.69 of the candlestick with a HOLLOW body. A hollow body represents that the close ended higher than the open. The same is true for the opposite, if the opening is 0.69 and the close is say 0.65 it will be marked with a FILLED-BODY, and a wick (top) of 0.69 and a tail (bottom) of 0.65. That is a BASIC overlook, like i said I’m going to spoon-feed you, more than welcome to ask questions =)
Using this basic understanding, if you folks take your time too look into ANY Forex currency traded candlestick chart, you will begin to draw an image. The same way a computer programmer reads a C++ page and begins to see the basic outlining of the project so too will you begin to see it as well. A seasoned trader can within seconds compare and analyze a Forex chart and get the info he needs. I will also post an example of a Forex candle-stick chart.
Our Forex Analyst, Mr Cortez often posts Forex updates in the Candlestick fashion, guess what folks if you took some time to read this POST and look at the photos that iv added, you will have ENOUGH knowledge so that you could from now on understand his chart posts and predictions. In my next post we will discuss further details and a possibility of a “proxy-trading hub” =) Stay tuned folks!
Thanks for Reading,
Nisim(Nick) -Forex Trader, Business Analyst and Developer.