Candlestick is an ancient Japanese Charting Technique to represent the open, high,low and close for the particular week.

REAL BODY

The real body is the 2-dimensional rectangle made by the difference between the open and close of the trading day. The real body will be white on days that the stock closes higher than it opens, and red on days that it closes lower than it opens.

 

UPPER AND LOWER SHADOWS

The upper shadow is the vertical line drawn from the top of the candlestick's real body to the day's high. The lower shadow is the vertical line drawn from the bottom of the candlestick's real body to the day's low.

There are many more details to candlestick especially with regard to their ability to predict turning point when used together with conventional indicators. In this site, we are using candlestick charts but the candlestick signals will not be obvious to the subscribers as it is inbuild as part of the formulas that generate the buy and sell signals.

 

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