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How to Read Candlestick Charts:
Candlesticks are a very elegant and efficient way to view an asset's price chart. Candlesticks quickly show which way the
price moved during a specific time period using colors, as well as how far the price moved during that period.
Each candlestick is composed of a real body and a wick (or tail). The real body is the "fat" part of the candle. It reflects the
difference between the open and close price for that period.
Wicks or Tails
The real body represents the difference between the open and closing price of a specific time period. The wicks or tails--the
small thin lines above and below the real body--represent the high and low price for that period.
Most charting platforms allow traders to make adjustments to their candlesticks charts, so they can set them up in a way
that suits their trading and is visually appealing. Alter the colors of the up or down candles to make the contrast between up
and down movements more distinct.
Due to the visual nature of candlesticks, traders have developed candlestick patterns which they watch for to indicate a
continuation or reversal of the trend, or to highlight trading opportunities.
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