Hi there!
Before understanding candle stick trading, i think its important to first understand how candle stick works; then understanding what sequential patterns of candle stick means, before moving on to trading using candle stick patterns (which involve knowledge of other technical indicators such as Moving Average, MACD, Bolinger Bands, Relative Strength Index etc etc
Heres a quick guide to help you understand how candle sticks work.
On the left, you will see a bullish candlestick, which shows that in the time period (could be one day, 15 minutes, 5 minutes etc), the stock price movement. For instance, assuming that we are looking at the one day stock price movement, the filled portion of the candlestick is called “the body” (also referred to as “the real body”). The long thin lines above and below the body represent the high/low range and are called “shadows” (also referred to as “wicks” and “tails”).
A bullish candlestick is one where the close price is higher than the open price; vice versa for the bearish (right) candle. The two ends of the "tails" or "wicks" represent the highest price/lowest price of the stock throughout that day.
Hi there!
Before understanding candle stick trading, i think its important to first understand how candle stick works; then understanding what sequential patterns of candle stick means, before moving on to trading using candle stick patterns (which involve knowledge of other technical indicators such as Moving Average, MACD, Bolinger Bands, Relative Strength Index etc etc
Heres a quick guide to help you understand how candle sticks work.
On the left, you will see a bullish candlestick, which shows that in the time period (could be one day, 15 minutes, 5 minutes etc), the stock price movement. For instance, assuming that we are looking at the one day stock price movement, the filled portion of the candlestick is called “the body” (also referred to as “the real body”). The long thin lines above and below the body represent the high/low range and are called “shadows” (also referred to as “wicks” and “tails”).
A bullish candlestick is one where the close price is higher than the open price; vice versa for the bearish (right) candle. The two ends of the "tails" or "wicks" represent the highest price/lowest price of the stock throughout that day.