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Candlestick analysis is the Japanese way of understanding demand and supply and adopted later by western. Candlestick analysis provides short term trend analysis and studies in detail based on the daily candlesticks patterns and analyse a small portion, hence this can be used for weekly trading.
A candlestick analysis is a technical analysis used to determine the price movement of the stocks/securities.
Candlestick charts have been developed in the 18th century by Munehisa Homma, Japanese rice trader of financial instruments.
Candlesticks are usually composed of the body (black or white), and an upper and a lower shadow (wick): the area between the open and the close is called the real body, price excursions above and below the real body are called shadows. The wick illustrates the highest and lowest traded prices of a security during the time interval represented.he body illustrates the opening and closing trades.
Candlestick is one of the most popular technical analysis widely used in determining the price movement in financial instruments. It is very much helpful for the positional traders in determining the price movement and entry point for the trade.
Candlestick analysis gives us a detailed study of the open and close price also the high and low price and the colorful representation makes us easy to read and understand. It is very effective as a daily basis and also more effective in weekly basis. Evaluation using candlestick is more effective to predict for a short term like a weeks time.
candlesticks is Japanese way of identifying demand and supply. it was been practised in japan more than 200 yrs ago which was later been taken over by the western people. its simple and powerful method to analyse. when compared to any other charts candlesticks provide us more information. accounts few days to study and provides a short term trend ie weekly basis.
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