What is candlestick chart? and How to understand it?

Japanese Candlestick chart

How to understand the candlestick chart:

As you can see in the picture there are two parts of the candle

  1. Body of the candle

  2. Wick of the candle.

And in the picture, four points are named

  1. Open

  2. Low

  3. High

  4. Close

Let's suppose on company's share price opened at 100Rs, that's the opening price and after opening it went down to 95Rs, That is the lowest price today that the share price went to, and after reversal, the share price goes to 120Rs, That is the highest price that share went to, and after that while closing the market share price closed at 115Rs that is the closing price.

like that, a bullish candle works, also a rough line chart representation is drawn in the picture. Lets see this in a real market chart picture as you can see below picture

As you can see the green candle is pointed with "This candle" in the picture.

The upper wick of the candle is too long and the body is too short which means there are more sellers who are active soo the price will go down as you can see in the picture. if the candle body is bigger and the candle is green in color then the buyer is too active at that price or area of the chart. And if the candle is red and the body is too big then that is called bearish Engulfing candle which means there are more sellers who are activated so price is going down.

In the case of the bearish candle, it just works opposite to the bullish candle.

Let's suppose that the price opened at 115Rs and then the price goes to its highest point at 120Rs and then after reversal it goes to the low of 95 Rs and then it closes at 100Rs.

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