Story.
It began to be used in Japan in the 17th century to anticipate the price of rice and to establish futures contracts that were profitable for the analyst.
From there it expanded to other markets.
Basic Candle Theory:
To create a candlestick chart, you must have a dataset that contains open, high, low, and close values for each time period that you want to display. The hollow or full part of the candlestick is called "the body" (also known as "the real body").
The long, thin lines above and below the body represent the high / low range and are called "shadows" (also called "highlights" and "tails"). The high is marked by the upper part of the upper shadow and the low is marked by the lower part of the lower shadow. If the stock closes above its opening price, a hollow candle is drawn with the lower body representing the opening price and the upper body representing the closing price. If the stock closes below its opening price, a filled candle is drawn with the upper body representing the opening price and the lower body representing the closing price.
Questions
Why is the opening price different?
This does depend on the type of candle, if the bar is red or bearish as you decide to call it, it means that the opening is above the closing price. And also the same in the opposite case.
Why are High and Low the same?
Well, here the type of candle does not depend, it depends on the price of your asset. If the price is high. It will remain high and if the price is low it will be low.
What is the body?
The body is the distance between the opening price and the closing price.
What is high?
High is the highest list price, but it is not inside the body. This is often called "shadow".
What is Low?
Low is the lowest listed price but it is not inside the body. This is often called "shadow".
If you like this, follow me soon we will explain what is Hollow Candles and what is Patterns Candles
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Graphic Guide Part 2
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Part 4- Basic Candles Finish, NEXT One Line Patterns Candles
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Part 5 - One Line Patterns Finish, NEXT Two Line Patterns.
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Part 6 - Two Line Patterns Finish, Next Three Line Patterns.
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Part 7- Three Line Patterns & Four Line Patterns & Five Line Patterns
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Part 8 - Explaining Bars Chart
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