How to Read Candlestick Charts

Candlestick charts. Traders and investors less commonly use candlestick charts because they're considered to be more complicated and cumbersome than Barchas. There are more than 150 candlestick signals and patterns showing a level of complexity and sophistication that most traders do not consider worth learning. However, candlestick charts are gaining popularity as educational material on the topic is becoming increasingly available. Education is power. Candlestick charts are similar to the bar charts as they both display the complete trading range by showing the four important price values open, high, low and close. In trading, the candlestick chart displays the four important price values of a specific time frame. One minute. Five minutes. Ten minutes. Thirty minutes. Our only. Daily. Weekly. Ultimately. The main difference between Berkut and Candlestick Park is in the body of the charred. After drawing the vertical and horizontal dashes to connect the high with the low and the open with the close, just like the backyard, a box is formed. The box is called the body of the candle. If the closing price is higher than the opening price, the color of the candle is green. If the closing price is lower than the open price, the color of the candle is around. The vertical line appearing above the body is called Upper Shadow. The vertical line appearing below the body is called Lower Shadow. The body and the shadows form what we call candlestick charts or simply Kendal's. The size and the color of the body and the length of the shadows are very important information regarding the current market direction. Possible market reversals. And the strength of future price movements. Candlestick charts can be used as a tool to benefit from reversal and continuation patterns during uptrends known as bullish markets, as well as during downturns known as bearish markets. We will discuss in greater detail the importance of such information in forming lessons.