In financial charts, a candle, also known as a candlestick, is a visual representation of the price movement of an asset, such as a stock, currency, or commodity, over a certain time period. Each candle represents a specific time frame, such as a day, a week, or an hour. A candlestick is made up of a rectangular body and two thin lines, called shadows or wicks, that extend from the top and bottom of the body. The body represents the opening and closing prices of the asset during the time period, while the shadows show the highest and lowest prices reached. If the candle is green or white, it means that the price of the asset went up during the time period, and the opening price is represented by the bottom of the body, while the closing price is represented by the top of the body. Conversely, if the candle is red or black, it means that the price of the asset went down during the time period, and the opening price is represented by the top of the body, while the closing price is represented by the bottom of the body. Candlestick charts are widely used by traders and […]
Charts & Candle – What is a candle
What is a Candle ? Candlestick is most commonly used methodology in Technical analysis of Trading instruments, be it commodities or Stocks. Technical analysis was first started in Japan in 17th Century by Rice Traders. Later on Charles DOW initiated very modified version of technical analysis in US around 1900. Technical analysis is based in the principal “The “what” (price action) is more important than the “why”. All known information is reflected in the price. Buyers and sellers move markets based on expectations and emotions (fear and greed). Markets fluctuate. The actual price may not reflect the underlying value.” Candlestick based charting started sometime in 18th Century, and it was started by a rice trade named Homma. his ideas were refined and developed over the years and turned the candlestick charting we use these days. How Candles are formed — To Create a candle stick chart, you need candles of price action. Each candles denotes some time period which can be any thing ranging form 1 min to 1 month. To draw the candle you need Open, High, Low and Close values of that period. The hollow or filled body of candle is called the body. One end of Candle […]