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Ichimoku Charts: An introduction to Ichimoku Kinko Clouds by Nicole Elliott

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2. Constructing the Cloud Charts

Candlesticks – the foundation

The first thing to plot on your graph are candlesticks. If you’re already familiar with candlesticks, then you might like to skip this section. (There’s a brief primer on candlesticks in the appendix.)

Candlesticks are similar to Western bar charts: the highest price of the period is plotted, the lowest, the opening price and the close for that period.

While bar charts have tiny little horizontal marks either side of the vertical bar to denote the open and close (and sometimes just the close), candles make the most of these two pieces of data. They are drawn as a fat bit either side of the bar and known as the real body. So, you have a thin vertical line joining the high and ...

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