Candle Zones – How to Trade Candle Zones

candle zones

To know how candles burn, you should understand the flame’s different zones. Flame temperature can differ drastically from one candle to the next. The hottest zone of a candle is known as the non-luminous zone. This zone is the hottest and does not produce much light. It is typically yellow in colour. In this zone, fuel vapours are burned completely, and the candle does not produce much light. The colour of this zone also changes as the flame gets hotter.

The flame consists of three distinct zones. Each zone is different in temperature, and its colour can also provide insight into the type of candle burning that you’re experiencing. The outer zone of the flame is blue because it has complete combustion. The middle zone is orange and bright, and contains carbon particles. The inner zone is the coolest, and is composed of unburned wax vapours. The yellow zone is the most visible to the human eye.

There are several ways to trade the candlesticks. You can look for reversals or continuations of old trends. Look for a supply and demand zone where demand overcame supply. This is a common candle pattern and it can be a precursor to a large price move. If you can spot this pattern, you can then trade accordingly. Aside from the price action, candle zones are helpful tools to identify market trends before they start.