What is Candlestick?
A
candlestick is a chart which shows the price movement of a security. It shows
the opening, closing, high & low price of the stock for a specific period. The
wide part of the candlestick is called real body. The thin line above or below
the body is called shadow.
Candlestick tells the investor
whether the closing price is above or below the opening price. Red or black
candle stick indicates that closing price is below the opening price. It also
indicates that there is significant selling pressure and price is bearish.
Green or white candle stick indicates that closing price is above the opening
price and price is bullish.
As shown in above chart, lower part of real body of green candle indicates the opening price while as upper part indicates the closing price. Upper part of red candle indicates the opening price and lower part indicates the closing price. Lower & upper shadow of candle indicates the lowest and highest price respectively for a particular day.
As shown in above chart, lower part of real body of green candle indicates the opening price while as upper part indicates the closing price. Upper part of red candle indicates the opening price and lower part indicates the closing price. Lower & upper shadow of candle indicates the lowest and highest price respectively for a particular day.
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