Single Price Action

How to Read Candlesticks

On weekdays we mainly update with daily reports, but on holidays and such we hope to update with technical analysis, flow, and stock characteristics. This time I wrote about price action and candlesticks.

We start from the basics, but a candlestick represents price movements over a certain period. It is analyzed using the four values: open, close, high, and low.

Candlesticks are completed through waves like those in the figure below. This does not cover every pattern, but you can see how candlesticks form in this way.
By tracing from higher timeframes, we read the market and, if there are clear patterns, we aim to act on them with the mindset of taking opportunities.

Then, the range from the open to the close is called the real body, the range from the real body up to the high is the upper wick, and the range from the real body down to the low is the lower wick.
From candlesticks, we read changes in buying and selling pressure and shifts in psychology.

Isolated Price Action

We will introduce the basic types of individual candlesticks.