Candlestick Chart Can Tell Everything We Need to Know in Trading Or Investing

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It is very interesting story about Candlestick. It has already been used since 400 years ago back in Japan where people used it as an indicator for trading in rice. If the price of rice is higher than the previous closing day, people use white candle and if the price of rice is lower than the previous closing day, people use red candle.

Candlestick is still being used until now for representing the price both in Stock Market and Foreign Exchange Market and candlestick is used for knowing how many percent the movement of the stock market or foreign exchange in particular period. In order to analyze easily, it is packed into one platform and this platform is called Candlestick Chart; This platform means a lot for traders and investors in which they can use this platform for decision making whenever they want to trade or invest. The nice thing from this platform is for example we display one year chart and every candlestick in that chart can be displayed in one day, one week, one month or even one quarter. These all flexibilities make them easier for analyzing.

When we take a look at every candle in chart, it has a different shape of body and tail. The tail of candlestick means that during one particular time; the candlestick captures the movement of price and the body is created exactly from the opening price to the closing price. Moreover, when the opening price is quite far from the closing price, the shape of the body will be long; on the other hand if the opening price is close to the opening price, the shape of the body will be short. Actually, there are a lot of terminologies that people use. At this moment, I just give a brief introduction what candlestick is and how it relates to Candlestick Chart.