What is Candlestick ?

Traders of Crypto-currency and other financial markets often use candlesticks as a great visual aid to what a particular price has done within a certain time period.Candlesticks are formed by showing a candle “body”, a solid area between the open and close price, and “wicks”, which represent the high and low. Sometimes a solid candle can be formed when the open was the low and the close was the high, and thin candles with less of a solid body can be formed when a price is volatile and ranges a lot within the day.Candlesticks can also give clues to price action and the mood of the market towards a certain stock or index. For example, bullish candles form when a market goes up, moves lower, tests support, then springs back to close at a high.Many charting platforms recognize candles and can screen stocks to pull up candidates for a trade. But without solely relying on this technology, it’s a good idea to wrap your head around what these patterns look like.Let’s take a look at four of the most widely used candlestick patterns alongside some actual stock chart examples to show their worth.

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