How to read single candlestick

1. Price and sense



Candlestick provides these price levels:

• Open - first price in specific period of time
• Close - last price in specific period of time
• High - highest price in specific period of time
• Low - lowest price in specific period of time

And these main sense levels:

• Buy
  Candlestick is white, positive. That means that closing price is higher then opening price
  
  
• Sell
  Candlestick is black, negative. That means that closing price is lower then opening price
  

TIP!: you can define color for positive and for negative candlestick as you want (I use green=positive, red=negative).



2. Shape info

Shape tells you about strength of emotions on the stock market.

• Long body candlesticks

Candlestick with long body means strong buying interest (positive candlestick) or selling interest (negative candlestick)





• Short body candlesticks

Candlestick with short body means indecision. Buyers and sellers cannot win over each other. The last example below is known as doji candlestick.







• Hammer candlestick

Candlestick with short body and with long tail means possible change in sense. If you find such candlestick after several days of decline, then it indicate that decline can be over or will pause. The same applies for several positive days.






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