What is Candlestick in Trading ??

Japanese candlestick are always formed using open, high, low and close of a chosen time frame.

If close is above the open then we can say that the candlestick is bullish which means that the market is rising in the period of time. Bullish candlesticks are always displayed as either white or green candlestick.

Mostly platforms use white color to refer to bullish candlesticks. But color never matters, you can use whatever color you want.

The most important is the open price and the closing price.

If close is below the open then we can say that the candlestick is bearish which indicates that the market is falling. Bearish candles are always displayed as either black or red candlesticks. But this is not a rule.

You can find different colors used to differentiate between bullish and bearish candlesticks.

• The filled part of the candlestick is called the real body.
• The thin lines poking above and below the body are called shadows.
• The top of the upper shadow is the high.
• The bottom of the lower shadow is the low.

Now will see other things about candlesticks in our next blog.