CandleSticks Complete Guide

A candlestick chart (also called Japanese candlestick chart) is a style of financial chart used to describe price movements of a security, derivative, or currency.

Each “candlestick” typically shows one day, thus a one-month chart may show the 20 trading days as 20 candlesticks. Candlestick charts can also be built using intervals shorter or longer than one day.

It is similar to a bar chart in that each candlestick represents all four important pieces of information for that day: open and close in the thick body; high and low in the “candle wick”.

Being densely packed with information, it tends to represent trading patterns over short periods of time, often a few days or a few trading sessions.

Candlestick chart of EUR/USD currency pair on daily timeframe in MetaTrader 5 trading platform.
Candlestick charts are most often used in technical analysis of equity and currency price patterns.

They are visually similar to box plots, though box plots show different information.

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  • Lessons 10
    • Three Inside Bar
    March 22, 2021

    What Are Three Inside Up/Down? Three inside up and three inside down are three-candle reversal patterns that appear on candlestick […]

    Michael Davis
    0 2.17 Min
    Piercing Bar
    February 24, 2021

    What Is a Piercing Pattern? A piercing pattern is a two-day, candlestick price pattern that marks a potential short-term reversal […]

    Tom Adams
    0 7.32 Min
    Morning Star Bar

    What Is a Piercing Pattern? A piercing pattern is a two-day, candlestick price pattern that marks a potential short-term reversal […]

    Michael Davis
    0 2.32 Min
    Inside Bar
    February 15, 2021

    How to identify an inside bar  Identify a preceding trend using price action/technical indicators Locate inside bar pattern whereby the […]

    Tom Adams
    0 2.18 Min
    Morning and Evening Bar
    February 9, 2021

    Two reliable candlestick patterns used on trading are the Morning Star and the Evening Star. These two patterns are multiple-candlestick […]

    Michael Davis
    0 2.14 Min
    Outside Bar Anatomy
    January 26, 2021

    What Is an Outside Reversal? An outside reversal is a price pattern that indicates a potential change in trend on […]

    Tom Adams
    0 2.06 Min
    Bearish Pin Bar – Buy Setup
    January 22, 2021

    What is a Bearish Engulfing Pattern? A bearish engulfing pattern is a technical chart pattern that signals lower prices to […]

    Michael Davis
    0 2.47 Min
    Bearish Pin Bar Anatomy
    January 19, 2021

    A pin bar is a candlestick with a long upper or lower wick (shadow), a small or no real body, […]

    Michael Davis
    0 1.21 Min
    Bullish Pin Bar – Buy Setup
    January 12, 2021

    How to Trade the Forex Pin Bar Setup One of the most reliable candle formations you can see on the […]

    Tom Adams
    0 1.37 Min
    Pin Bar
    December 24, 2020

    The pin bar formation is a price action reversal pattern that shows that a certain level or price point in […]

    Michael Davis
    0 1.2 Min