Area charts are linear charts which means that the price movements are represented by the line.
The basic rules of their construction are the same as in the case of Japanese candlesticks. This chart type is formed by a vertical line and two short perpendicular lines to the left and the right. The short lines give us the information about the opening and closing prices while a vertical line about the highest and the lowest ones. Bars contain the same set of price data but visually they are not so suggestive.
Another chart type available on the Olymp Trade platform is Heiken Ashi. Take a look at the picture below and guess what it is.
If you are not familiar with Heiken Ashi and you will see the chart you will probably mistakenly guess that it is a candlestick chart. It actually looks like a candlestick chart. What can grasp your attention is the fact that there are usually more the same colored candles in the row. In other words, the color of the candles doesn’t change that often like on the candlestick chart. The reason for that is Heiken Ashi candles are made not from pure prices (OHLC) but from calculations made using prices. All formulas used for calculating Heiken Ashi Candle are listed below.
Pros and Cons 😊😔
Like any investment platform, eToro has its advantages and disadvantages. Here’s a quick overview:
- ✅ User-friendly interface and intuitive platform.
- ✅ Wide range of investment options and assets.
- ✅ Social trading features allow users to learn from and copy successful traders.
- ✅ Accessible educational resources to help users improve their investment knowledge.
- ✅ Reliable and trusted platform used by millions of users worldwide.
- ❌ Limited availability of certain assets in some regions.
- ❌ Fees and spreads associated with trading on the platform.
- ❌ Market volatility can lead to potential losses.
- ❌ Dependency on internet connectivity and platform uptime.
- ❌ The risk of losses due to market fluctuations and investment decisions.
Why are Japanese Candlesticks the most commonly used?
Candlesticks are the most popular chart type used to analyze today’s market situation. Why do professionals like them so much? First of all, they are very easy to use. The other reason is the amount of information they contain. They give a general overview of the situation and that is the reason they can be meaningful and useful without adding any indicators.
Wish you only good choices!
- Q: How do I sign up for an eToro account?
Signing up for an eToro account is simple:
- 1. Visit the eToro website.
- 2. Click on the “Sign Up” button.
- 3. Fill in the required information.
- 4. Complete the verification process.
- 5. Fund your account and start trading.
- Q: Can I trade cryptocurrencies on eToro?
Yes, eToro offers a wide range of cryptocurrencies for trading, including Bitcoin, Ethereum, and more.
- Q: Is eToro regulated?
Yes, eToro is a regulated platform and operates under the oversight of various financial authorities.
- Q: What is social trading?
Social trading is a feature offered by eToro that allows users to connect with other traders, share strategies, and even copy their trades.
- Q: Can I use eToro on my mobile device?
Yes, eToro provides mobile apps for both iOS and Android devices, allowing you to trade and manage your investments on the go.
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