What is Candle Stick?

CandleStick

CandleSticks are mainly used to understand the markets current position and the history of the market throughout its lifetime which helps investors for trading purposes. 

What is a candle stick?

A candle stick is normally a type of stick which shows high, low, opening and closing of a particular period or for a specific period. The wide part of candlestick is called real body that tells the trader or investor that the closing price was higher or lower than the opening price.

Black/Red indicates that the stock closed lowered than the opening price and White/Green indicates that the stock closed higher than the opening price.

Breaking  Down Candlestick:-

The candlestick shows the days high and low and how they compare to opening and close of the price, the candle stick shape varies between days high, opening, closing and low prices.

Candlesticks reflect the impact of investor sentiment on prices and are used by technical analysts to determine when to enter and exit trades. Candlestick charting is based on a technique developed in Japan in the 1700s for tracking the price of rice. Candlesticks are a suitable technique for trading any liquid financial asset such as stocks, foreign exchange and futures.

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