Page 54 - Trading #101 Course – Part One: Trading Basics

TRADING #101 COURSE – PART ONE: TRADING BASICS /2017-10-06

Candlestick Chart

And, each individual candlestick tells a story. One candlestick represents the interval of
time that the candlestick is illustrating. For example, a 1-minute candlestick shows you
what happened for a 60-second period. Just as with an OHLC price bar, you will see the
open, close, high, and low price of that period.

Figure 8.2 Candlestick

There are special names associated with each area of a candlestick, such as the body
(black or white), and an upper and a lower shadow (wick). The area between the open
and the close is called the real body, and price excursions above and below the real
body are called shadows.

If the candlestick closed higher than it opened, the body is white, with the opening price
at the bottom of the body and the closing price at the top. If the candlestick closed lower
than it opened, the body is black, with the opening price at the top and the closing price
at the bottom.

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