Understanding Candlestick Charts: Technical Primer
Despite its advances over the line chart, the candlestick chart is hardly a new invention. This charting method was developed in the 18th century Japan by rice traders.
Reading the Candle Stick Chart
Taking a look at a candlestick chart like the one above, the stock's overall price movement is fairly easy to spot, much like in a line chart. Unfortunately, that's the extent of most investors' understanding of candlestick charts.
So how do you glean all of that other information from a candlestick? Take a look at the diagram below:
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