Candlestick Charting 101

1 Dec

Candlestick charts are a simple and effective way to read the days price action. Originating in Japan, Steve Nison brought the candlestick charting method to the west and is widely used in technical analysis to this day as candlestick charting can be used and applied across any trading vehicle or time frame.

The candlestick is made up of two parts, the body and the shadow. A body that is filled in means prices opened higher than they closed. A body that is not shaded means prices opened lower than they closed. Below is an example of multiple daily candlestick charts strung together to form price movement.

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