Candlesticks are formed by plotting the opening, closing, high and low price of a day. The opening and closing price forms the body of the candle. The high and low price of the day forms the upper and lower tails of the candle respectively. A candle is green in color if the day is bullish and red in color if it is bearish. If you plot the candlestick for days of a week or two weeks, you can form various technical analysis. While the price patterns, using the line charts, were good to express price behavior, they need a few months to form the pattern and give more meaning. For the week traders, this was not of much help. They can use the candlestick analysis to understand the short-term trends. There are various candlestick analysis methods like engulfing, piercing, DOJI, hammer and hanging man.
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