What is a candlestick chart?

Candlesticks don’t involve any calculations. Each candlestick represents one period (e.g., day) of data. The fi gure given below displays the elements of a candle. A candlestick chart can be created using the data of high, low, open and closing prices for each time period that you want to display.

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.

What data does a candlestick show?

Each candlestick shows the following data: Open (O): The opening price of the asset during the specified time period. Close (C): The closing price of the asset during the specified time period. High (H): The highest price reached by the asset during the time period. Low (L): The lowest price reached by the asset during the time period.