How to Read Candlestick Charts in Trading Like a Pro
Candlestick charts are among the most popular tools for analyzing price movements in trading. Whether you are a beginner or an experienced trader, understanding candlestick patterns can provide valuable insights into market trends and help you make informed decisions. This guide will teach you how to read candlestick charts like a pro, with practical tips and examples.
What Are Candlestick Charts?
Candlestick charts are a type of financial chart used to represent price movements over a specific period. Each “candlestick” displays four key pieces of information:
Open price: The price at which the asset started trading during the period.
Close price: The price at which the asset ended trading during the period.
High price: The highest price reached during the period.
Low price: The lowest price reached during the period.
These charts are named “candlesticks” because they resemble candles with a body (the range between the open and close) and wicks (lines extending from the body, representing the high and low).
