Candle stick depicts the price of a stock over certain period of time. This ranges from a minute to monthly basis. They basically tell us about four main things
1.Open- Opening price of a stock
2.Close- Closing price
3.High- Price cost that reached highest during that time interval
4.Low- Lowest price reached
1.Open- Opening price of a stock
2.Close- Closing price
3.High- Price cost that reached highest during that time interval
4.Low- Lowest price reached
There are other some other candle sticks like heikinashi candle, bar chart type. We will only focus on
Candle stick only. Above you could see that there are two candle green and red. Green means buying side is dominant and red one means selling sides are dominant. There are also neutral candle which is neither bullish or bearish.
Now which candle to choose ? Answer is multiple time frames. If you know this already its great but if you dont then do not worry. Multiple time frame is basically looking charts at diffrent time intervals and trying to identifying trend of a stock.This I will show you with Example later on.
