What is a candlestick chart?

Candlestick charts display the high, low, open, and closing prices of a security for a specific period. Candlesticks originated from Japanese rice merchants and traders to track market prices and daily momentum hundreds of years before becoming popularized in the United States. Candlesticks can be used by traders looking for chart patterns.

What are the different types of chart types?

The most common chart types are candlestick, bar charts and line charts. Regardless of which type of visual representation of price traders use, candlesticks, bar charts and line chart help to find clues to identify: Candlestick charts use a visual representation of price broken down into two main parts, the body and the wick.

What technical tools can be performed on Candlestick charts?

Technical tools, such as trendlines, support and resistance levels, chart patterns and peak and trough analysis can be successfully performed on candlestick charts and in any financial market. Besides the mentioned tools, candlestick charts are also often used in combination with candlestick patterns.

What are the different types of price charts?

There are many ways to organize charts and the visual representation of price on these charts. The most common chart types are candlestick, bar charts and line charts. Regardless of which type of visual representation of price traders use, candlesticks, bar charts and line chart help to find clues to identify: