Candlestick Chart from A to Z (Part I)

1. Concept

- Japanese candlestick chart (Candlestick chart) is an analytical support tool used by the Japanese since ancient times to trade rice.

- Mr. Steve Nison discovered this secret while working with brokerage firms in Japan. Later, he further researched and popularized this technique in the West. This technique became popular around the 90s of the 20th century.

2. A candle's structure

- Candle body: is composed of two information about the closing and opening prices.

• If the closing price is higher than the opening price, the body will be colored white (or usually green), representing a bullish period.

• If the closing price is lower than the opening price, the body will be colored black (or usually red), representing a bearish period.

- The shadow part: located at the ends of the body, composed of the highest and lowest price.

• With information about the highest price, the candlestick shadow will be above.

• With the lowest price information, the candlestick shadow will be below.