7-08 Candlesticks


Candlesticks are a type of stock chart developed in Japan. Instead of lines, a vertical block, which looks like a candlestick, is used to symbolize a day or week’s worth of price action.

Candlestick charts track price movements of a security over some time period. An interesting combination of a line and a bar chart, candlestick displays are easier to understand than some other varieties of chart. The lines represent individual movement while the bars indicate the “range” of price movement. This gives you a combined picture of immediate term market moves and short-term trends. They are similar to OHLC (open, high, low, close) charts with more detail and trend data.

chapter7-8a

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