How to Read Candlestick Charts 

In the stock market, the price of a share is determined by its demand and supply among other factors. Candlesticks are a visual representation of the size of price fluctuations. Traders use these charts to identify patterns and gauge the near-term direction of price.

Candlestick charts can give you a variety of information if you understand patterns and trends. Using the knowledge of the different types of candlesticks can help you piece together patterns, which will lead to more successful and potentially profitable choices.

Financial technical analysis tools that depict daily price movement information that is shown graphically on a candlestick chart.

Formation of Candlestick Chart:

A candle is form from its body and wick. And this wick may be upper side or may be lower side of body.

So, the candle is divided into two parts:

1. The Body
2. Upper Shadow
3. Lower Shadow

• Upper Shadow: The upper wick or shadow indicates the high trading session. If the upper shadow is longer, the asset price surpasses the open and close price. At the same time, a short upper shadow reflects asset trading close to its opening and closing price.

• Lower Shadow: The lower wick or shadow depicts the low trading session. If the lower shadow is long, then the asset price is on the lower side. On the other hand, a short lower shadow depicts asset prices that trade close to a low open or close point.

• The Body: 

  
  

  The candlestick has a wide part called the "real body." This real body represents the price range between the open and close of that day's trading. When the real body is filled in or black (also red), it means the close was lower than the open. If the real body is white (or green), it means the close was higher than the open.

 A candle has four different data points:

1. Open: ‘Open’ is the price at which the asset trades at the very beginning of the intraday (or the given period).
2. High: The top of the upper shadow or wick represents the high price point of an asset. However, if the asset opens or closes at its highest price, an upper shadow is not formed.
3. Low: Similarly, the bottom of the lower shadow reflects the low price point of an asset. Again, if the price opens or closes at its lowest, the lower shadow is absent.
4. Close: It is the closing price at which the last trade is made at the end of the intraday or the given period.

This is basic knowledge about candles in trading. In market there are thousands patterns and strategy by which common people make money. Several times they make money and several times they fail to make money.

We are not recommend those pattern and strategy for you, we focus in three strategy in market.

We will teach you at this website three types of earning money strategy from market..

1. Trading at demand zone

2. Momentum trading

3. Investing for short time