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Candlestick Charting

 

Candlestick is our favorite for charting. Again, it is a personal choice but the reason why we love candlestick over Open High Low Close (OHLC) chart is because they can tell you more about the market psychology.

In our experience candlestick have different meanings and they can help you determine market psychology.

An empty candle represents a closing price higher for the day and a full candle  represents a closing price lower for the day. The top of the wick is the high price for the day and the bottom of the wick is the low of the day.

In reality both OHLC and candlestick will server the same purpose for you, I would probably suggest to learn how to use OHLC charts first, then move on to learning how to ready candlestick charts and you will discover another world of trading.

So how do you tell the difference between an up day or a day down ? Sometimes it depends on the software package you are using to view candlestick chart. Generally thought an up day is represented by the empty candle as seen on the first circle from the left. A Down day usually is fill with colour as highlighted by the green circle below.

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Candle Stick Introduction

  

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