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SB Share Market Basic To Advance Information: How To Read Candlestick?
How To Read Candlestick?
⇧READ_CANDLESTICK⇩
- A candlestick chart includes the open, close, high and low price of a stock over a specific time frame.
- This time frame can be fixed by the trader as per his requirement.
- For example, if the time limit is fixed at a ten minute then a new candlestick is graph after every ten minute.
- The trader can find out all the four major price movements of the stock over a particular time frame.
- The trader must observe the previous candle and observe how they have change over time.
- Body of Candlestick become larger or smaller?, what about the wick?, how have they change?
- These are the Questions the trader must ask himself as he analyses the candlestick chart.
- When the real body of the candlestick becomes a larger, it indicates an increase in movement.
- The body of the candle shows how much the price of the stock has changes over the duration of the time frame.
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