How do you read a candlestick chart?

The chart consists of individual “candlesticks” that show the opening, closing, high, and low prices each day for the market they represent over a period of time, forming a pattern. In order to read a candlestick chart, figure out what each different part of a candlestick tells you then study the different shapes to learn about market trends.

Are bar charts as visual as candle charts?

Bar charts are not as visual as candle charts and nor are the candle formations or price patterns. Also, the bars on the bar chart make it difficult to visualize which direction the price moved. There are various ways to use and read a candlestick chart. Candlestick chart analysis depends on your preferred trading strategy and time-frame.

What is a daily candle chart?

Each candle depicts the price movement for a certain period that you choose when you look at the chart. If you are looking at a daily chart each individual candle will display the open, close, upper and lower wick of that day. Open price: The open price depicts the first price traded during the formation of the new candle.