Chapter 1 The Basic Candlestick

Candlestick charting combines all the needed features of daily stock movement: opening and closing, breadth of the day’s trading, upward or downward price movement, and high/low prices reached during the day. This is achieved through a combination of shape and color.

image Candlestick Chart

A visual summary of all the trading action in a single period, showing the opening and closing prices, breadth of trading, and upward or downward movement in price.

At the same time, candlesticks are easy to understand. They are actually quite simple in what they reveal. If you had to construct your own candlestick chart for a ...

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