WHAT IS A CANDLESTICK CHART ANALYSIS?

WHAT IS A CANDLESTICK CHART ANALYSIS?

Candlestick Charts are used in stocks, equity, foreign exchange and
commodity trading that helps in keeping track of the price movement.
These charts are helpful for all long term investors and day traders.
One can construct the chart using the data set containing open, close,
high and low values for each time.

The final image that comes in display contains:

• Hollow or Solid Portion: Body
• The line above and Belo Body: Lower and Upper shadow respectively.
• Top of the Upper Shadow: Mark the highest price
• Bottom of the Lowest Shadow: Mark the lowest trading price.

BODY
Solid-Body

• One gets the solid body during the selling pressure (Bearish tendencies) when the opening price is more than the closing price.

Hollow Body

• The hollow body is during the buying pressure (Bullish tendencies) when the closing price is more than the opening price

Color

this chatrs are represnted using different colors that depend on the price action of the sequrity for a particular day.

the complete red color is when the closing price is below the opening price.

 Any color is used to represent the candelstick chart the white blue or green color reprents higher trading than the previous one. On the other hand, black or red colou reflects less trading than the previous day.

Thus , the color represntion is usedto determine the trading pattern of the instrument at a particular time.

In all, the candelstick chart analysis help traders to know the opemimg price , closing price , highest trading price and the lowest trading price of the stock on a particular day.

One can interpret  these charts using the candelstick pattern.