0Q: What Is A Candlestick?
Ans:
A candlestick is a type of price chart used that displays
the high, low, open, and closing prices of a security
for a specific period.
Every candlestick has “Open” “Close” “High” and “Low”
Open: Open represents the opening price of the timeframe, which the candlestick represents.
Close: Close represents the closing price of the timeframe.
High: The highest price movement that was recorded during the timeframe.
Low: The Lowest price movement that was recorded during the timeframe
- Candlestick charts are used by traders to determine possible price movement based on past patterns.
- Candlesticks are useful when trading as they show four price points (open, close, high, and low) throughout the period of time the trader specifies.
- Many algorithms are based on the same price information shown in candlestick charts.
- Trading is often dictated by emotion, which can be read in candlestick charts.
