How To Read Candlesticks

Upper shadows represent the session high and lower shadows the session low.

How to read candlesticks. The third candle is a long green candlestick. Candlesticks can also form individual formations which could indicate buy or sell entries in the market. At the bottom of a green candlestick is an open.

How to Read Hollow Candlesticks - Differences Explained. These reveal the intra-day high and low. So the candlesticks get plotted along the time scale as per the range of trading prices.

Know What is Price Action Analysis. While there are many ways to use and read a candlestick chart pattern recognition is often used to predict price direction trends and overall momentum. Candlesticks with short shadows indicate that most of the trading action was confined near the open and close.

Candlesticks with long shadows show that prices extended well past the open and close. When a candle is HOLLOW it means that the CURRENT closing price is higher than the same periods open price. When a candle is SOLID it means that the CURRENT closing price is lower than the same periods open price.

If one or more technical indicators in your candlestick chart reinforces the trend youve detected in the candlestick pattern you have even more reason to initiate a trade. In trading circles it is said Bhaav Bhagwan. This kind of candlestick indicates that prices moved up and down a lot during trading but neither buyers or sellers dominated the trading session.

In InvestaChart the open high low and close is conspicuous. In this video I explain how to read candlestick charts in trading. They can be made of one two or even more candlesticks so weve created this handy list of the main bearish and bullish patterns for you below.