Candlestick Charts are the most popularly used charts by traders as the candlesticks offer a wide range of information about the price with respect to time.

Each candlestick includes the following

• Opening Price
• High Price
• Low Price
• Close Price

The candlestick can show price movements for various time frames. As a particular time frame finishes, it creates a new candlestick on the graph appears with new information.

Opening Price

During the opening price if the trend is upward then the candlestick is in green color and if the trend is downward then the candlestick is in red color.

High Price

The high price is the highest price traded during the particular time frame which may be 1/3/5/10/15/30/60 minutes or day or week etc. If the high price does not go above the closing/opening price then it does not show a shadow or a wick.

Low Price

The low price is the lowest price traded during the day. If it’s not below the opening/closing price then it does not show a wick or shadow.

Close Price

The close price is the last price traded during the day. The close price marks the completion of the candlestick. Before the candle is formed the all the 3 colors of the Opening, High and Low price can
change to form the final candlestick.

How to Practice reading candlestick?

• Open a demo trading account
• Explore free web based charting platforms

You can set the candlestick to the desired time frame as you like and can see how they work. Once you learn how to use candlesticks you can also do day trading in smaller time frames like 10 or 15 minutes.

You can also vary the candlesticks once you have learnt to use them. Some variations can be

• You can set the color for various aspects of the candlestick such as Open versus close pricing or
  close versus prior close pricing
• You can make the candlestick hollow or filled with colors to match your viewing and understanding comfort.
• Once set, they will give you the analysis based on your settings of candlesticks.
• You may look out for various kind of candlestick patterns to forecast the direction of next move to have entry and exits at right time to make good profits and reduce risks.   

If you wish to learn more about Candlesticks, Candlestick Patterns, Trading and Investing Strategies for massive success in the Stock Market you can contact us and we can help you understand it better and professionally.

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