Learn How To Read Candlestick Charts


As we saw earlier, each Candlestick shows the opening price, closing price, highest trading price and lowest trading price of the stock on that particular day. Based on these 4 prices, Candlesticks can form various patterns like Engulfing, Hammer, Shooting Star, Doji and many more. The secret is in leveraging the expertise and experience of Steve

Nison… You see, most

traders do things the hard, slow, and expensive way.


Candlestick charts are a visual aid for decision making in stock, foreign exchange, commodity, and option trading. For example, when the bar is white and high relative to other time periods, it means buyers are very bullish. The size of the bar/candle depends on the time frame you opt for. Let’s say that the price bar or candle is generated every 5 minutes. Bar and candlestick charts will show the cost of the first transaction at the beginning of that 5 minutes, plus the highest and lowest transaction prices during that time.

How to interpret Candlestick charts ?

Most trading charts you see online are bar and candlestick. They give you the most information in an easy-to-navigate format. Put simply, they show where the price has moved within a specified time period. Trading charts are one of the most important tools in your investing arsenal.

  • Bar charts effectively extend line charts, adding the open, high, low, and close.
  • Bar charts and candlestick charts show the same information, just in a different way.
  • Steve Nison is looked up to by traders worldwide as THE source for candlestick training.
  • You will usually find two themes in your chart analysis, breakouts and and reversals.

No matter what markets you trade, candlesticks can help you make smarter and more confident decisions. Our free online resources will help you get started on the right foot. But now, you need to get to grips with day trading chart analysis. Having a chart with all the answers is no use if you can’t decipher the lines, ticks, and bars to get your hands on them. These charts cover candle charting, Western technical’s, and trading strategies. This is followed by three small real bodies that make upward progress but stay within the range of the first big down day.

Candlestick Components

In order to read a candlestick chart, figure out what each different part of a candlestick tells you then study the different shapes to learn about market trends. Bar charts and candlestick candlestick chart excel charts show the same information, just in a different way. Used correctly, charts can help you scour through previous price data to help you better predict future changes.


Doji candlesticks form when a stock’s open and close are almost equal. The length of the upper and lower shadows can vary, and the resulting candlestick looks like a cross, an inverted cross, or a plus sign. A Doji indicates a sense of indecision between buyers and sellers.

Want to learn more about how to read candlestick charts and candlestick patterns? Get started with our free training HERE

The good news is there are also lots of completely free day trading charts. You get most of the same indicators and technical analysis tools that you would in paid-for live versions. You will also find some of the free options offer a space for traders to follow experienced investors, and discuss instruments and markets with each other. A candlestick chart is a type of financial chart that shows the price action for an investment market like a currency or a security.

Is There Free Charting Software For Trading?

When that variation occurs, it’s called a “bullish mat hold.” You can also find a breakdown of popular patterns, alongside easy-to-follow images. Check out live examples of Candlestick Chart in our charts gallery and JSFiddle gallery.

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The former is when the price clears a pre-determined level on your chart. Experience has shown that it’s essential to continually enhance your trading

knowledge to fast track your trading profits. See how Nison candlesticks can potentially help you achieve trading and investing success. There are also many other ways investors can use charts.

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