Candle stick Analysis “The stick that is the Carrot”

Candlestick charts are a visual aid for decision making in stock, foreign exchange, commodity, and option trading. For example, when the bar is white and high relative to other time periods, it means buyers are very bullish. The opposite is true for a black bar. Candlestick charts serve as a cornerstone of technical analysis. The main usage of a candlestick patterns is to identify trends. Looking at a candlestick, one can identify an asset’s opening and closing prices, highs and lows, and overall range for a specific time frame. Each bar represents all four important pieces of information for that day: The open, the close, the high and the low. Being densely packed with information, they tend to represent trading patterns over short periods of time, often a few days or a few trading sessions.