Technical Analysis Part 1 -Candlesticks

I got some questions on what all the charts which I had in blog is all about. As such, I will add a few blogs to explain over the next couple of days.



Starting from the very top, the top chart indicates the price of the stock. This consists of multiple candlesticks.







A candlestick chart is a style of Bar-chart used primarily to describe price movements of a stock, currency or commodity over time.

It is a combination of a line-chart and a bar-chart, in that each bar represents the range of price movement over a given time interval.



The candlestick can be black/red -in which case it open high and closed lower or white/blue in which case it opened at a lower price and closed higher.



The candlestick consists of a body and the wick (shadow)



The body indicates the opening and closing price of the stock.



The wick or shadows illustrates the highest and lowest traded prices of a security during the time interval represented.







Candlestick charts are normally accompanied by the volume charts.



For more on candlestick charts, the below link is a good source:

http://en.wikipedia.org/wiki/Candlestick_chart