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How to Calculate Candlestick Periods in Metatrader

How to Calculate Candlestick Periods in Metatrader

 

Metatrader

 

The Candlestick period is the time it takes to form 1 candlestick. Many novice traders may not understand how to distinguish candlesticks from several time frames. So to interpret the meaning of the candlestick shape in several periods will be difficult and confusing.

The way to calculate the period of a candlestick in metatrader is easy if you understand it correctly. Usually, people use this period to determine market strength and potential movement in the next period.

On this occasion, JurnalForex tries to translate this period simply and use it as a moment to seek profit. This discussion is very interesting, especially for beginners who are trying to understand the shape of candlesticks and take advantage of patterns in forex trading.

Candlestick Picture

The initial stage that needs to be understood before learning more about how to calculate candlesticks is understanding candlestick images.There are three types of charts in Metatrader, namely: lines, bars, and candlesticks. Especially for candlesticks, some special characteristics and data can be used to read market strength.

To see the data, consider the candlestick image below:

Now consider the picture of the Daily time frame candlestick above. The picture explains that in one day (24 hours) 1 candlestick will be formed with 4 main data, namely the opening price, the highest price, the closing price, and the lowest price.

What is meant by these 4 data:

  • Opening Price: the price created at the opening of the period of the day.
  • Highest Price: the highest price touched on that day.
  • Closing Price: the price created at the close of the market for the day.
  • Lowest Price: the lowest price during the day.

Within 1 day consists of 24 hours, and the market is usually opened from 05.00 WIB. So every 5 am in western Indonesia, 1 candlestick D1 will be formed.

 

Candlestick Formation Meaning

After we understand the opening price, closing price, highest price, and lowest price and the formation of 1 candlestick in the D1 time frame period. Then what does the candlestick mean? What can we use to read market forces?

For example in the picture above where the closing price is lower than the opening price, it means that a bearish candlestick was formed that day. This meaning that on that day the closing price could not penetrate the highest price yesterday.

So there is a signal that the market has pushed for a sell action, the selling power on that day is greater than the buying action. It is usually influenced by the policy or fundamental news of the day.

It should be understood that in 1 D1 candlestick contains 8 H4 candlesticks, 24 H1 candlesticks, and so on for candlesticks on the time frame below.

What does this mean? That is the D1 candlestick there are 24 H1 candlesticks which could be where there is a candlestick formation or pattern that shows a reversal of direction.

So many traders try to pattern the candlestick or often called the H1 candlestick pattern to read market strength and take profit opportunities based on the candlestick pattern on that day.

 

How to calculate Candlestick Period

The way to calculate the candlestick period in Metatrader can be done easily. This period represents the time group so that the trader can read the trend of the volume that is happening.

For example, in the H1 period, the period will group 24 candlesticks as 1 day and if it is added to the candlestick information, it will be seen at what time traders will make more transactions.

The picture above is a metatrader chart on the H1 time frame. While the vertical lines are a time of every 24 candlesticks. While the green line below it is the volume of traders who make transactions.

From the picture, we can see that in each period there are times when the volume is short and sometimes the volume is high. Periodically the shape of the volume is almost similar or illustrates that at certain times the market is filled with buying and selling.

When volume is high it may be a good time to follow the trend in the short term. If we also pay attention to the grid line, it can also be seen on the grid to what extent after the line period of the day the volume has increased.

By combining volume, period, grid, and the stochastic oscillator, there is an opportunity that can be done by paying attention to the support-resistance area.

The formula for reading candlesticks by period

Periodically, indeed we cannot take the opportunity to trade forex. However, if we look at the volume in one period, we can read the ideal time to trade, which is when the market has started to get crowded. This is indicated by a volume line that starts to rise.When the volume goes up, we can start counting candlesticks and read trading opportunities by paying attention to the support and resistance areas and the stochastic indicator.

How to calculate candlesticks in one period only serves to group the price movements of the day and pay attention to the volume in each period.

The formula for reading candlesticks based on period can be said to be reading opportunities in one day to sell or buy by looking at the support and resistance areas.

Open Position With Candlestick

After we know how to calculate candlestick periods and group them into easy-to-read patterns like the picture above. Then the next thing is to look for opportunities to open positions with the candlestick earlier.There are three basic pieces of information that can be used to open an open position in the short term. The first information is the area of ​​support and resistance, breakouts, market forces.

Understanding this takes practice to better filter out false signals and get the best odds.

Before trying this technique, it is necessary to understand from the start that every technique created for trading does not always provide profit. Therefore, money management is needed so that the account does not run out quickly or margin calls. The trick, of course, is to use a stop loss in every open position.

How to combine the 3 main information, namely the support-resistance line, breakout, and market strength to open a position, the initial stage of course is to look at the support or resistance area.

If the price doesn’t manage to break through support and instead breaks through resistance, there is a buying opportunity there. The next stage is to pay attention to the breakout area and market strength.

The strength of this market can be seen through the volume that is rising and the condition of the stochastic indicator that supports it. If there has been a breakout of the resistance area and provides a buying opportunity but the stochastic indicator is in the overbought area, consolidation will usually occur first.

So the next step is to wait for the right moment to open a position by paying attention to the condition of the next stochastic indicator.

After the 3 main information has been fulfilled, it is time to open a position, either sell or buy depending on the signal given.

Those were some things that could be additional information in trading. By knowing how to calculate the candlestick period in Metatrader, it will be easier for us to read trading opportunities based on period, volume, breakout area, and market strength. Hopefully, this information can be useful for traders who are new to metatrader.

About Author: Muh Ikhsan

Forex Signal 30 is the best forex system since 2009 and has been used by thousands of traders from around the world to generate profit in forex trading. This system is created by our team of Brilliant Forex Signal Team, this system is made as simple as possible for beginner and professional traders.

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