25/11/2021
๐ HOW TO READ CANDLESTICK?๐
Today, candlestick charts are the preferred tool of analysis for traders and most investors since they provide all the required information at a glance.
Here comes the point: how to read candlesticks?
Letโs start with the candles. Each candle represents a period of time. This period can vary from 1 minute to 1 month. To change the period, you use time frames on the chart.
A candle consists of a body and wicks. Wicks can be upper and lower. The size varies depending on the market situation. Sometimes wicks can disappear, or a body can be very small. A candle shows different aspects of price:
๐ Open Price
๐ Close Price
๐ High Price
๐ Low Price
The candleโs body represents price gain or loss. The wicks show the session high and low. If the wicks are long, it means that the asset was traded past the open and close. Color also matters. Typically, bullish candles are colored green. Bearish candles are colored red.
So, this is the basics you should know about candlesticks.
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Reference source: Tradeciety, FBS Trader