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How to use candlestick chart |
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Candlestick charts shows sets of data consist of open, high, low, and close values of each period. The hollow and filled section is called “the body". The lines above or below “the body" is called shadows or tails. If the stock is closed higher than opening price, then a hollow candlestick is drawn. In addition, if the stock closed lower than the opening price, a filled candlestick is drawn. In a hollow candlestick where closing price is higher than opening price, the lower body slows opening price and the upper body shows closing price. In a filled candlestick where closing price is lower than opening price, the lower body slows closing price and the upper body shows opening closing price. Hollow means stock up and filled means stock down.
Various variation of candlestick are: - Marubozu is a candlestick that shows the high and low price represented by open and close price. When closing price is higher than opening price, then closing price is equal to high price. In addition, when closing price is lower than opening price, opening price is equal to high price. This candlestick indicates that the buyer controlled the price action from the opening to the closing.
 - Doji is a candlestick that shows the same opening price virtually equals to closing price. This pattern is a neutral signs, thus need future confirmation.
 - Dragon fly doji is a candlestick which shows the same open, high, close price. This pattern shows that seller dominated trading at first that drove the price lower. However, buyer then dominated the trading makes the price back to the opening level.
 - Gravestone doji is a candlestick which shows the same open, low, close price. This pattern shows that buyer dominated trading at first that drove the price higher. However, seller then dominated the trading makes the price back to the opening level.
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Finance 
