A Complete Overview About the Candlestick Concept
Candlesticks are considered to be one of the most popular choices among the traders in the world to be line short, bar charts and the point as well as figure chat. This particular concept is gaining a lot of popularity among traders because it is very much capable of conveying a wide range of trading information in a single go in the most important visual manner. The candlestick charts are also very much successful in terms of making sure that people are capable of simply reading and interpreting things because it will consist of the body which is the rectangular part and shadow which is the lines of the body. Every candlestick will also consist of open, high, low and close prices.
The trader based upon the horizontal horizon sets will be making the right kind of decisions.
Following are the most important terms associated with the utilization of candlestick charts from the house of best players which are very much helpful in the interpretation of the things:
- Open: This is the first price traded and will be indicated by either the top or the bottom of the body of the candlestick.
- High: High is the highest price traded during the period for the candlestick and it will be indicated by the top of the shadow that will occur above the body. High prices can be open, close or high hit within the timeframe of the candle and if the open was the highest price then there will be no case of any kind of upper shadow in the whole process.
- Low: This is the lowest possible price during the period of the candlestick and will be indicated by the bottom of the shadow that will occur below the body. The low can also be one of the three prices which include open, close or the low price hit within the timeframe of the candle. If the open was the lowest price then there will be no lower shadow of the whole process.
The colour of the candlestick will always depend upon whether the closing price is below or the opening price. While the candlestick will be the process of formation and will constantly change after the price will fluctuate in the market. The open will remain fixed but the rest of all the parameters will constantly change in the whole process.
- Close: This is the last price that has been ready during the candlestick and will be indicated by either the top or the bottom of the body.
- Range: This is the basic difference between upper and lower shadow that will indicate the range price move in the timeframe search for the candlestick. Higher will be the range higher will be the volatility and vice versa in the whole process.
Interpretation of the candlestick pattern is one of the most important things is to be undertaken by the traders so that they can become successful in the long run and indulge in the right kind of technical analysis that will further make sure that they will be formulating the best strategies as per the needs and requirements of the investors. Experts from the house of companies like 5paisa are always there to provide the people with best guidance throughout the process. You can easily open a 5paisa demat account and avail the amazing services.