A Japanese candlestick chart is going to provide you with more information such as: the opening price, closing price, as well as the high and the low that the price of the selected financial instrument reached during the selected time frame period.
A Japanese candlestick consists of 3 parts. The upper wick or shadow (tail above the rectangle), the body (the rectangle) and the lower wick or shadow (tail below the rectangle).
On a BUY candlestick (bullish candlestick, when the price rises) the opening price is displayed at the lower edge of the candlesticks body and the closing price is displayed at the upper edge of the candlesticks body. The tip of the wick on top of the candle displays the high that the price reached while the tip of the wick below the candle displays the low that the price reached during the selected time period.
On a SELL candlestick (bearish candlestick, when the price falls) the opening price is displayed at the upper edge of the candlesticks body and the closing price is displayed at the lower edge of the candlesticks body. The tip of the wick on top of the candle displays the high that the price reached while the tip of the wick below the candle displays the low that the price reached during the selected time period.
Take note: it is important to identify the colors of the candlesticks. Usually a RED candle (bearish candle) shows when the price has decreased while a GREEN candle (bullish candle) shows when the price has increased. However the candlesticks can be of different colors, for example black and white. You can adjust the colors of your chart display by right clicking your mouse on the chart and selecting "properties" or by clicking F8.
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