Introduction to Candlesticks

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:

A Candlestick
  • 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:

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Disclaimer: Joyful Dividends is an independent and free website. All examples, charts, histories, tables, commentaries, or recommendations are for educational or informational purposes only. We do not receive compensation by any direct or indirect means from visitors and users of this website, and from the stocks, securities, institutions or any underwriters, brokers or dealers associated with the national or international forex, commodity and stock markets. By using Joyful Dividends, you agree that Joyful Dividends, its subsidiaries, affiliates, officers and employees shall not be liable for any direct, indirect, incidental, special or consequential damages.