Chapter 3
Candlestick Construction and Basic Candle Lines
In Chapter 2 different charting styles were explained and contrasted, showing their advantages and drawbacks. This chapter looks at how candlesticks are drawn and shows the meaning of various candle lines.
CHAPTER OBJECTIVES
In this chapter, you will
• Learn how to use data points in candlestick construction
• Understand components used in candlestick construction
• Recognize candle color and body size and their meanings
• Identify classifications of basic candle lines
Candlestick Construction and Components
The most common comparison between charting styles today typically compares bar charts and candlestick charts. Bar charts still have a very loyal following but, as discussed ...
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