|
Japanese
rice traders developed candlesticks
centuries ago to visually display
price activity over a defined trading
period. Each candlestick represents
the trading activity for one period.
The lines of a candlestick represent
the opening,
high, low and closing values for the
period.
The
main body of the candlestick represents
the range between the opening and
closing prices. If the closing price
is higher than the opening price,
the main body is white. If the closing
price is lower than the opening price,
the main body is black. The lines
protruding from either end are called
wicks or shadows.
|