Candlestick charts versus bar chart

Formation

In order to create a lamp table, must have data that contains an open, high, low and close values ​​for each time period you want to display. Hollow or filled portion of the candlestick is called the "body" (also known as the "real body"). The long thin lines above and below the body represent the high / low range and are called "shadows" (also known as "wicks" and "tails"). The high is marked by the tip of the upper shadow and low by the bottom of the lower shadow. If the stock closes higher than its opening price, a hollow candlestick is drawn with a lower body representing the opening price and the peak body representing the closing price. If the stock closes below its opening price, filled candlestick is drawn in the upper part of the body representing the opening price and the bottom of the body representing the closing price.

Candlestick Formation examples

Compared with traditional charts, many traders consider candlestick charts more visually appealing and easier to interpret. Each candlestick provides an easy-to-decipher picture of price action. Immediately a trader can see compare the relationship between open and close, as well as high and low. The relationship between open and close is considered vital information and forms the essence of candlesticks. Hollow candlesticks, where close is greater than the open, indicate buying pressure. Filled candlesticks, where close is lower than outdoors, indicating selling pressure.

Candlestick charts versus bar example