Page 43 - Module 4 - Trading_Ways_and_Means

Module 4 - Lesson 6 Charts used in technical analysis

4. Candlestick Chart
The candlestick chart is closely related to the bar chart. It also consists of four major prices: high, low,
open, and close. In addition to the common readings, the candlestick chart has a set of particular
interpretations. The latter is possible thanks to the convenient visual observation of that chart.

The opening and closing prices form the body (jittai) of the candlestick. To indicate that the opening
was lower than the closing, the body of the bar is left blank. Current standard electronic displays
allow you to keep it blank or select a colour of your choice. If the currency closes below its opening,
the body is filled. In its original form, the body was coloured black, but the electronic displays allow
you to keep it filled or to select a colour of your choice.

The intraday (or weekly) direction on a candlestick chart can be traced by means of two "shadows":
the upper shadow (uwakage) and the lower shadow (shitakage). Just as with a bar chart, the candlestick
chart is unable to trace every price movement during a period's activity.

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