file:///C:/Users/Dell/Downloads/google60652df4ad9aa0a0.html 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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