Candlestick Chart 

A candlestick chart (also called the Japanese candlestick chart) is a financial chart used to describe the movement in the price of a security, derivative, or currency.

Each “”candle” usually shows one day, so a one-month chart can show every 20 trading days. like 20 candles. Candlestick charts can also be made with intervals that are shorter or longer than a day. It is similar to a bar chart in that each candle represents the four important pieces of information for that day: opening and closing in the thick body; high and low at the “”Candlewick””. Because it is tightly packed with information, it tends to show trading patterns for short periods of time, often for a few days or a few trading sessions.

Candlestick chart of the EUR / USD currency pair in the daily timeframe of the MetaTrader 5 trading platform. Candlestick charts are most commonly used in technical analysis of stock and currency price patterns. They are visually similar to box plots, although box plots display different information. The area between opening and closing is called the real body, the course changes above and below the real body are shadows (also called wicks). The wicks illustrate the highest and lowest traded prices of an asset during the illustrated time interval.The body illustrates the opening and closing processes. The price range is the distance between the top of the top shadow and the bottom of the bottom shadow that moves during the candle’s timeframe.

The margin is calculated by subtracting the low price from the high price. If the asset closes higher than it opened, the body is hollow or unfilled, with the open price down and the close price up. If the asset closed below the opening price, the body is solid or padded, with the opening price up and the closing price down. Therefore, the color of the candle represents the price movement relative to the closing price of the previous period and the “”fill”” (solid or hollow) of the candle represents the direction of the price of the period in isolation (solid for an opening higher and lower closing; gap for lower opening and higher Shut down). A black (or red) candle represents a price movement whose closing price is lower than the closing price of the previous candle. A white (or green) candle represents a higher closing price than the closing price of the previous candle. In practice, any color can be assigned to the ascending or descending price candles. A candle does not have to have a body or a wick.In general, the longer the candle body, the more intense the trade. When trading, the trend of the candlestick chart is crucial and is often shown in color. The candles can also show the current price when they are formed if the price has moved. up or down over the time phrase and the price range of the hedged asset during that time of a certain volume range (for example 1,000; 100,000; 1 million shares per candle).

In modern charting software, the volume can be integrated into candlestick charts by increasing or decreasing the width of the candlesticks according to the relative volume for a given volume. Looking at a candlestick can identify the opening and closing prices, highs and lows of an asset, and in addition, candlestick charts serve as the cornerstone of technical analysis. For example, if the bar is white and high compared to other time periods, it means that buyers are very optimistic.The opposite is true when there is a black bar. A candlestick pattern is a specific sequence of candles on a candlestick chart that is mainly used to identify trends.”