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What are candlestick chart patterns?

Candlestick chart patterns are the distinguishing formations created by the movement in stock prices and are the groundwork of technical analysis. Technical Analysts and Chartists globally seek to identify chart patterns to predict the future direction of a particular stock.

How to read a candlestick chart?

Following are the prices one needs to understand while reading a candlestick chart: The open price of a stock can be indicated by the top or bottom of the candlestick body, depending on whether the stock has moved up or down during the period.

What data makes up a candlestick chart?

This cheat sheet shows you how to read the data that makes up a candlestick chart, figure out how to analyze a candlestick chart, and identify some common candlestick patterns. Four pieces of data, gathered through the course of a security’s trading day, are used to create a candlestick chart: opening price, closing price, high, and low.

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