Educational Post
What Is a Candlestick Chart?
A candlestick chart is a popular visualization tool used by investors to analyze the price movement and trading patterns of a stock or other security. For each trading period or unit of time (e.g., one day), one candlestick appears on the chart.
every candlestick has a real body (the bulk of the âcandleâ) and an upper and lower âwickâ or shadow. Its opening price (represented by the top of the real body)
Its closing price (represented by the bottom of the real body)
The highest price it traded at (represented by the top of the upper wick/shadow)
The lowest price it traded at (represented by the bottom of the lower wick/shadow)
Whether the dayâs closing price was higher (usually green or white) or lower (usually red or black) than its opening price
Candlestick charts are used primarily in technical analysis, which is a process through which investors and analysts attempt to predict price changes in securities based on factors like chart patterns, trading volume, and historical data rather than company fundamentals.
By analyzing historical price and trading data across countless securities, technical analysts have identified a number of patterns that repeatedly appear in candlestick charts and often indicate something significant and actionable, like a downtrend, an uptrend, or a reversal in price movement.
Skill Exercise:
Open tradingview.com select any coin chart and highlight bullish and bearish candlesticks.share in comments or your post in group
