As xStation 5 is a browser-based platform, you don’t need to install any additional software on your computer in order to start using it. Our sophisticated web-based platform is packed with features. Crucially, the three red bars in the countertrend should all fall within the body of the first tall green candle.

In periods of trending market conditions, prices exhibit a certain level of a pullback before they reverse. You can set up the Fibonacci indicator levels to determine signals for a potential reversal and open a position in the same direction as the primary trend. Level 2 data is a different, more in-depth look at the market for traders. When you’re on an ordinary trading platform, you’ll receive standard data – for example, the current buy price and sell price of that market. However, the information collated in level 2 data is way more advanced and telling. The cup and handle chart pattern does have a few limitations.

Bullish Vs Bearish Candlesticks

Trend line – This is an imaginary line you can draw across the highs and lows of prices. Draw the line access the lows for an upward trend and across the highs for a downward trend.

If the trade value was too close to the mid then the trade is coloured grey. The Order Fill Calculator appears at the top right hand corner of the Level 2 screen. This dynamically calculates the price or number of shares for an order based on the Level 2 order book, as it appears on the screen at that moment in time. There is nothing “better” about technical analysis vs. fundamental analysis. The very best approach is the one that makes sense to you. Gapping –This is a sudden surge in a price with no gradual rise. Instead, the asset will open higher with no intervening trades.

Technical Analysis

At $0.97-$0.98, it is not too much risk to take a short position. This is a chart of the market makers — the people putting up offers to buy or sell. On the left there’s a pile of people who want to buy BTC from you, at what price they’ll pay. On the right are a pile who want to sell BTC to you, at what price they’ll accept.

Traders can use Fractal indicators as a support and resistance level. The benefit is that traders can avoid trading into a Fractal S&R, they can trade reversals at a Fractal, or they can trade the breakouts away from Fractals. The Fractal is, however, also a basic MetaTrader 4 indicator, which offers key support and resistance levels that define the price chart. It is a good idea especially for those who are not patient and disciplined enough or those who lose because of entering too early and exiting too late. It helps you follow the trending markets, because it keeps you wait for a longer time, and then it lets you in when you are at the beginning of a strong trend. That means the open and close prices were also the highest and lowest points the market hit in the session. A long wick on either side, meanwhile, means that price spiked up or down – but the move reversed before the close.

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Bigger time-frames are used for analyzing the general picture and to get a broad perspective of the price action. Once the large picture is analyzed, a daily or an even smaller time frame can be used to zoom in on the last few months, days and hours. Technical traders also use candlesticks to get quick insight into the general sentiment surrounding a market. They how to read market depth chart do this by watching for candlestick patterns – but we’ll cover those in more depth later. Weighted average price and sum volume are calculated separately for all open deals in short and all open deals in long positions of an instrument. They are assigned as new open price and new volume for the deal, with maximum volume for long and short deals accordingly.

• No writer can know everything about an area, but they do owe it to their readers to do their best and get a knowledgeable eye to look it over if possible.
• Below that trio it becomes a little uncertain and is one of two areas of concern for the manager.
• The volume indicator shows the change in the number of shares being traded.
• You can set alerts when reading level 2 data so that you don’t have to watch the markets every second of every day.
• From shifting demographics and population migration to emerging infrastructure and industries, examine the forces transforming cities and uncover new opportunities in the world’s economic centers.
• The longer and rounder the bottom, the stronger the signal.
• The 38.2% to 50%level has a moderate depth, while the 61.8% (or ‘golden’) retracement level has higher depth.

We have only five oranges to sell, but buyers are asking for ten oranges to buy. So five oranges were sold at $1, and no sellers were found for the five remaining orders. An easy way to visualize this is by thinking of supply as a commodity product. Well, the Nasdaq-listed firm has got an amazing balance sheet.