Candlestick Chart With Example
Traders use candlestick charts to predict potential price movement based on historical trends. When trading, candlesticks are helpful since they display four price points (open, close, high, and low) over the specified time period.
The same price data displayed in candlestick charts serves as the foundation for numerous algorithms. Trading decisions are frequently influenced by emotions, which are visible in candlestick charts.
Source: https://groww.in/blog/how-to-read-candlestick-charts
A daily candlestick displays the market's open, high, low, and close prices for the day, just like a bar chart does. The "true body" of the candlestick is the candlestick's widest portion.
The price range between the opening and closing prices of that trading day is represented by this real body. It indicates that the close was lower than the open when the true body is filled in or became black. The close was higher than the open if the genuine body is empty.
These colours can be
changed by traders in their trading platform. For example, down candles are
frequently tinted red rather than black, while up candles are frequently shaded
green rather than white.
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