Candlestick

Candlestick has the meaning of a candlestick and has a shape like a candlestick. On a candlestick chart, the bar is called the body, and the axis is called the shadow.

On the candlestick chart, you can choose several time frames that will describe each candlestick. If the time frame is fifteen minutes, it means that one candlestick describes the price movement within fifteen minutes.

Well, in one candlestick, you can immediately get four information, namely: the initial or open price, the closing or closing price, the highest price, which is high, and the lowest price, which is low during that time period.

Then, you can also see that the candlestick has two colors, namely green and red. A green candle means a bullish candle, because the closing price was closed more than the opening price, or it means close > open (close greater than open).

In addition, a red candlestick means a bearish candle. This indicates that the period closed with a lower closing price than the opening price, or that means close < open (close less than open).

So, when the price is opened at OPEN, the price will then move to the highest level, which is HIGH and reach the lowest level at LOW. At the end of the course of the period, the price will close at the CLOSE level. Because the close level is higher than the open level, the candle color will automatically be green. If the open level is higher than the close, then the color of the candle is red.

Well, the axis above will be referred to as the upper shadow, this is a trace of price’s journey to its highest level in that period. Meanwhile, the wick below the candle is referred to as the lower shadow, which is a trace of the price’s journey to the lowest level in that period!

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