Reading Candlestick

Reading Candlestick

Green candle sticks are bullish, meaning price appreciated.

Red candlesticks are bearish, meaning price downwards.

The thick part is the candlestick body.

Lines that stick out above and below are called wicks.

For a green candle stick, the opening price is at the bottom and closing price is at the top.

For a red candle stick, the opening price is at the top and closing price is at the bottom.

The bigger the candlestick body is, the greater the momentum gain will be.

The bigger body shows price travelled a greater distance during the time.

Doji refers to a very small candlestick or close to no body.

Price swung up and swung down, but then closed close to the same price, as where it opened from buyers and sellers got nowhere.

Traders look at candlestick patterns and make decisions and this is called price action.