Thread by @BuzzingstockH

Thread 🧵on how to read #Candlestick Chart.

Most basic thing to learn first if you are thinking to learn #TechnicalAnalysis

🙏RT to maximize reach 🙏

@rohanshah619 @chartmojo @ArjunB9591 @Puretechnicals9 @RTSTOCKVIEW views welcome

A #candlestick is a type of price #chart used in #technicalanalysis that displays the high, low, open, and closing prices of a security for a specific period.

#CandlestickCharts were originally used by 17th century rice traders in Japan, today they are used by traders and investors around the world to trade in securities.

#TechnicalAnalysis

Such a chart is visually very appealing and very informative. It indicates the current as well as the past behavior of market participants.

A #candlestickchart consists of a series of candles, with each candle representing the trading pattern of each trading period which can be a trading day, week or month, depending on the time frame of the chart.

Candles can be of two types - #Bullish (green or white) or #Bearish (red or black).

When close price is higher than open price, then candle is #bullish candle. Central part of such candle is filled with white or green colour

When close price is lower than open price, then candle is #bearish candle. Central part of such candle is filled with black or red colour

As shown is figure above, a candle has three parts 👉 upper shadow (wick), real body and lower shadow (wick).

#Candlesticks #CandlestickCharts #TechnicalAnalysis

Upper Shadow 👇

It is the vertical line between the high of the day and the close (for Bullish Candle) or the open (for Bearish Candle).

#Candlesticks #CandlestickCharts #TechnicalAnalysis

Body 👇

It is the wide part of a candle, showing the difference between the open and closing price.

#Candlesticks #CandlestickCharts #TechnicalAnalysis

Lower Shadow 👇

It is the vertical line between the low of the day and the open (for Bullish Candle) or the close (for Bearish Candle).

#Candlesticks #CandlestickCharts #TechnicalAnalysis

Highest Price : The top of the upper wick indicates the highest price traded during the period.

#Candlesticks #CandlestickCharts #TechnicalAnalysis

Lowest Price: The lowest price traded during the period is indicated by the bottom of the lower wick.

#Candlesticks #CandlestickCharts #TechnicalAnalysis

Opening price: This is the price at which the first trade happened during the new candlestick time period.

If the price goes up, the candle turns green and conversely turns red on a price decrease.

#Candlesticks #CandlestickCharts #TechnicalAnalysis

Closing price: The closing price is the last price traded during the period of the candle formation.

If this price is above the opening price, the candle will be green, otherwise, it will be red.

#Candlesticks #CandlestickCharts #TechnicalAnalysis

Just by looking at the candle you can get some basic idea about strength of bullishness or bearishness.

Have explained it in the image below.

👇👇👇

#Candlesticks #CandlestickCharts #TechnicalAnalysis

Beginners can read this book to learn basics of #TechnicalAnalysis.

Book available in English, Hindi, Gujarati & Marathi languages.

📕 Guide to Technical Analysis & Candlesticks by Ravi Patel.

Beginners can read this book to learn #TechnicalAnalysis

Amazon Links for the books

👇👇👇

English - amzn.to/3aueylB

Hindi - amzn.to/3cvyebD

Marathi - amzn.to/36AGdAg

Gujarati - amzn.to/39EI34Z