What is Candlesticks ? with example

  What is  Candlesticks ? with example  

A candlestick chart is a method of showing prices — namely open, high, low and close — of an asset for a defined period. Candlestick charts are thought to have originated from Japanese rice traders in the 18th century. 

They are still one of the most popular ways of displaying prices of financial markets.

Note the difference between the “bull” candle (green) and “bear” candle (red). When a candle’s open price is lower than the close, the candle is said to be bullish, while the inverse is true.

A candlestick gives a good summary of how price behaved during the period being charted. All charting tools allow you to change the period of the candlestick chart, from one minute periods to one week or month per candle. 

This allows the trader to view market sentiment quickly (using colors) and get a good understanding of how prices behaved over a selected duration.

The colors selected are merely one option which the trader can tweak. Most charting platforms default to either green/red or white/black.

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