Candlestick
Candlesticks show the price movement of a stock or currency pair over a fixed period, and are named for their candle-like shape.
1.PositiveandNegative
Candlesticks are classified into two patterns: 2 patterns.
If the closing price is higher than the opening price, it is called a “Bullish”, and
if the closing price is lower than the opening price, it is called a “Bearish.”
The part surrounded by the opening and closing prices is called the body(じたい).
Before a candlestick is confirmed, the opening price and the current price are the body.
The vertical lines extending from it represent the high and low prices.
The line representing the high price is called the upper wick,
and the line representing the low price is called the lower wick.
And one candle shows the four price points (open, high, low, close) for a given period.
Displayed side by side, they clearly show the market condition and trend, making them indispensable for chart analysis.
High | 1 candle's highest price. |
Low | 1 candle's lowest price. |
Open | The price traded at the start of a period. If the candle is bullish (price rose), the bottom edge of the body is the open price. Conversely, for a bearish period (price fell), the top edge of the body is the open price. |
Close | The price traded at the end of a period. |
2.(Period)
Candlesticks range from one year down to one minute per candle
The period per candle can be changed.
Broadly, there are short-term and long-term types.
The daily chart represents one day's trading activity, called a “daily bar” (ひあし), and a weekly or monthly chart is referred to as a “weekly bar” (しゅうあし) and a “monthly bar” (つきあし), respectively.
Depending on your trading style,
it is advisable to decide which axis to monitor.