Friday, October 25, 2013

The Basics 4

What is a price slash ? A bar prices , symbolized by a vertical bar , the record is
pictographic activity the price of a financial asset during a period, where each price is a consensus
momentary value of all market participants , expressed in movement . Let us return to the first day
business with the actions of Aplicar.com
Each price bar provides a few pieces of information about the
balance of power between buyers and sellers .

To understand that
a graph need to know to interpret it . Let's assume one price bar
that reflects the period of one trading day.

In the vertical bar, through a
dash ( tick ) horizontal on the left is represented the price level of
first business day , the opening ( 1000 ) .

The last business day of the
Lock ( 1001 ) , is represented by a horizontal tick on your right . the
edges respectively represent the maximum ( 1.003 ) and the minimum ( 999 )
met this day.

The brands that represent the opening and closing is easy to understand how they arise , but as
forming the extremes? The upper end ( maximum ) formed when the willingness of buyers
pay increasingly higher prices was overwhelmed by the sales force against the sellers at that level .

Ie , the price rises to a certain level , in principle unknown , which once reached mobilizes
a mass of sellers whose desire to prevent the sale price go ahead . The lower end is formed
conversely .

Now that you know what is a bar , learn about the most common frequencies that are constructed ,
because they will be to determine the extent to which we are looking at a graph, in order to
determine the levels of support and resistance more significant .

So you understand even better the
meaning of a bar of how to process the fight between buyers and sellers over a day
trading, we invent a bar with the following information : aperture = 4.20, maximum = 13.00 , minimum =
= 1.50 and closing 11.50. Now , let's dissect it , creating a hypothetical unfolding . Make Account
the trading floor is divided into 18 periods of 15 minutes with 1 minute intervals between them and that each bar
15 minutes is constructed identically to the bar daily with the aperture value, the maximum value of the
value and the minimum value of closing.

At the end of the day , using two perpendicular axes ( the horizontal
representing a time scale and vertical value ) , you can see through the movement of
bars 15 minutes, as was the internal movement of trading that day .