Candlestick chart is a language of a stock who express about themselves. Charts does not speak but tell us deep meaning about themself by visually representing the candles. Candlestick chart is a language with wide information. Each candle has meaning in the chart and tell us what is the next candle. Wicks or shadows line above and below the body of the candle represent the movement above and below the open and close price and given the message about the next movement. Candlesticks show the emotion of buyers and sellers by visually representing the size of the candles. Candlestick chart of the stocks show about their historical performance and also help us to assume future performance base on the historical data. Candlestick chart of the stock shows their one-day data, one month, one year and five-year performance mean from their starting to current performance. Candlestick chart of the stocks is a combination of candles and candlestick patterns. In the price action trading, it should be given the priority to a candlestick chart.
The basic of candlesticks
Bullish Candle: When the close is higher than the open (green candle)
Bearish Candle: When the close is
lower than the open (red candle)
Candlestick chart also is known as a Japanese candlestick chart.
· Candlestick chart helps us to find out the support and resistance level of the stock.
· Candlestick chart helps us to find out the trend of the stock.
· Candlestick chart helps us to know the strength and weaknesses level of the stock.
· Candlestick chart helps us to predict next day opening and future of the stock.
· Candlestick chart helps us to know the breakout side of stock during sideways or range-bound trend.
· Candlestick chart helps us to know the buyer's and seller’s movement and their emotions.
kz Sajan Kumar
, Trader, Equity Advisor