Each candlestick provides a simple, visually appealing picture of price action a trader can instantly compare the relationship between the open and close as well as the high and low. If the stock closes lower than its opening price, a filled candlestick is drawn with the top of the body representing the opening price and the bottom of the body representing the closing price.Ĭompared to traditional bar charts, many traders consider candlestick charts more visually appealing and easier to interpret. If the stock closes higher than its opening price, a hollow candlestick is drawn with the bottom of the body representing the opening price and the top of the body representing the closing price. The high is marked by the top of the upper shadow and the low by the bottom of the lower shadow. 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”). The hollow or filled portion of the candlestick is called “the body” (also referred to as “the real body”). In order to create a candlestick chart, you must have a data set that contains open, high, low and close values for each time period you want to display.
0 Comments
Leave a Reply. |