candlestick
Candle Sticks
Candlestick Chart Patterns
The Japanese have been using candlestick charts since the 17th century to analyse rice prices.
Candlesticks contain the same data as a normal bar chart but highlight the relationship between opening and closing prices. The narrow stick represents the range of prices traded during the period (high to low) while the broad mid-section represents the opening and closing prices for the period.
• If the close is higher than the open - the candlestick mid-section is hollow or shaded blue/green.
• If the open is higher than the close - the candlestick mid-section is filled in or shaded red.
The advantage of candlestick charts is the ability to highlight trend weakness and reversal signals that may not be apparent on a normal bar chart.
