Thursday, August 20, 2009

Candlesticks (Japanese Candlesticks)

What are candlesticks?
The best way to explain is by using a picture:

Candlesticks are formed by using the open, high, low and close (OHLC).
  • If the close is above the open, then a hollow candlestick (displayed as white) is drawn.
  • If the close is below the open, then a filled candlestick (displayed as black) is drawn.
  • The hollow or filled section of the candlestick is called the "real body" or body.
  • The thin lines poking above and below the body display the high/low range and are called shadows.
  • The top of the upper shadow is the "high".
  • The bottom of the lower shadow is the "low".


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