What is candlestick charts

How to read candlestick charts?

Candlestick charts originated in Japan over 100 years ago when the West developed bar charts and point-and-figure charts. In the 1700s, a Japanese man known as Homma discovered that since there was a relationship between the price and the supply and demand of rice, markets were also strongly influenced by traders' sentiments.

A daily candlestick chart shows the open, high, low, and close prices of a security for the day. The wide or rectangular part of the candlestick is called the "real body" which represents the link between opening and closing prices.

This real body shows the price range between the open and close of that day's trade.

When the real body is filled, black or red, it means the close is lower than the open and is referred to as a bearish candle. This indicates that the price opened, the bears pushed the price down and closed below the opening price.

If the real body is empty, white, or green it means the close was higher than the open which is called a bullish candle. It shows that the price opened, and the bulls pushed the price up and closed above the opening price. The thin vertical lines above and below the real body are known as wicks or shadows which represent the high and low prices of the trading session.

Upper shadow denotes higher prices and lower shadow denotes lower prices during the trading session.

Before we get into the different candlestick charts, there are a few assumptions that need to be kept in mind which are specific to candlestick charts.

Strength is represented by a bullish or green candle and weakness by a bearish or red candle. One should make sure that whenever they are buying it is a green candle day and whenever they are selling make sure it is a red candle day.

The textbook definition of a pattern lays out some criteria, but one should point out that there may be slight variations in the pattern depending on certain market conditions.

One should look for a prior trend. If you are looking for a Bullish reversal pattern, the earlier trend should be bearish and if you are looking for a Bearish reversal pattern then the earlier one should be Bullish. Candlestick patterns can be divided into:

1. Continuity Pattern

2. Bullish Reversal Pattern

3. Bearish Reversal Pattern

Candlestick Patterns have many types all the types we can not cover at a single time so we can be divided into 3 parts. All of the are into continuous posts.

15 minute breakout with high volume strategy for intra day

15-minute breakout with high-volume strategy This is the simplest intraday breakout strategy for trading. In this strategy, trades come between 9:30 to 12:00 because after 12:00 it is possible to get the wrong trade into it. The maximum you can hold the intraday position is up to 3:15.After this stock exchange automatically squares off your position into the market price. Before we start first observe a 15-minute candle (9:15 to 9:30) then draw a line between that candle's high and low. When the first candle (9:15 to 9:30) high breaks that time takes a buy trade into the intra-day continue into the trade until the first candle (9:15 to 9:30) low is not broken otherwise 3:15 square off your trade. When the first candle (9:15 to 9:30) low breaks that time takes sell trade into the intra-day continue into the trade until the first candle (9:15 to 9:30) high is broken otherwise 3:15 square off your trade. In the above image, you can observe that when the price crosses the ...

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