What is a candlestick?
A candlestick is a type of price chart used that displays the high, low, open, and closing prices of a security for a specific period. We usually denote bullish (upward price movement) with a green candle and bearish (downward price movement) with a red candle.
Candlestick Formation
Body: Formed by the opening and closing price of a candle.
High Price: The highest price reached by that candle.
Low Price: The lowest price reached by that candle.
(For e.g. If we look at a H1 timeframe chart, the candle will show the highest and lowest price reached in that hour.)
Open Price: The price at which the candle opened its price at.
Close Price: The price at which the candle closed its price at.
(May see a gap in price opening from previous candle. Not all candle are continuous)
Upper wick/shadow: Shows the difference in price level of the high price and the body's high price. (Line above the body)
Lower wick/shadow: Shows the difference in price level of the low price and the body's low price. (Line below the body)
Not all candle need to have an upper wick or a lower wick. Why is it so?
This is because the price did not have much rejection be it to the bearish or bullish side. I will further elaborate some candlestick patterns that require us to take note of its wick/shadow in the next tutorial post. Stay tune!!!
Upcoming Lesson: Lesson 2: Candlestick pattern and its impact
A candlestick is a type of price chart used that displays the high, low, open, and closing prices of a security for a specific period. We usually denote bullish (upward price movement) with a green candle and bearish (downward price movement) with a red candle.
Candlestick Formation
Body: Formed by the opening and closing price of a candle.
High Price: The highest price reached by that candle.
Low Price: The lowest price reached by that candle.
(For e.g. If we look at a H1 timeframe chart, the candle will show the highest and lowest price reached in that hour.)
Open Price: The price at which the candle opened its price at.
Close Price: The price at which the candle closed its price at.
(May see a gap in price opening from previous candle. Not all candle are continuous)
Upper wick/shadow: Shows the difference in price level of the high price and the body's high price. (Line above the body)
Lower wick/shadow: Shows the difference in price level of the low price and the body's low price. (Line below the body)
Not all candle need to have an upper wick or a lower wick. Why is it so?
This is because the price did not have much rejection be it to the bearish or bullish side. I will further elaborate some candlestick patterns that require us to take note of its wick/shadow in the next tutorial post. Stay tune!!!
Upcoming Lesson: Lesson 2: Candlestick pattern and its impact