Candlesticks are a type of technical analysis price chart that shows the high, low, open, and closing prices of a security over time. Candlesticks aid in the identification of market movements.
It was a depiction that originated with a Japanese rice trader in the 18th century and has since spread across the globe to dominate stock market charts.
A candlestick’s structure is simple: it consists of a real body and a wick or shadow, indicating whether the trend is bullish or bearish.
A bullish candlestick will open with a low price and close with a high price; it will be empty or green in color.
On the other hand, a bearish candlestick will open high, close low, and be red or black.
A candlestick pattern is made up of different variations in the shape of a candlestick that suggest specific trends when displayed against a chart. To be a trader, one must be able to read these.
