On this page, we provide an introduction to Candlesticks and list down the basic candlesticks you can use to make trading decisions.
What are Candlesticks?
Candlesticks show the price movement of a particular stock in a given period, which is a “day” in this website. A candlestick is made up of a body and vertical lines:
- Body: the length of the body indicates the difference between the open and closing prices of the stock.
- Vertical lines: these are “shadows” above and below the body, representing the high and low prices reached by the stock during the day.
By itself, each candlestick tells us important information about changes in a stock’s supply and demand balance.
A succession of candlesticks forms a pattern, which is very useful in helping us make short-term trading decisions.
At Joyful Dividends, we provide a free resource for candlestick identification which you can access below: