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How do you read a candlestick chart?
Candlestick charts are very popular among technical analysts. They offer a great deal of information in a very precise manner. As the name suggests, the price movements for each day are represented in the shape of a candlestick.
It is similar to a bar chart because it represents the four data points: high, low, open and close.
While bar charts give volatility information only for a single trading day, candlestick charts can offer this information for a much larger time period. In addition, the candlesticks come in different colours based on the price movements.
A falling candlestick is generally represented by a black or red body while a rising candlestick is represented by a white or clear body.
In the above picture, it is clear how the values are represented in the form of a candlestick.
Which candlestick chart is best?
DOJI CANDLESTICK:
Doji Considered to be one of the most important single candlestick patterns, the doji can give you an insight into the market sentiment.
A Doji is a candlestick pattern that looks like a cross as the opening and closing prices are equal or almost the same.
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