What is Candlestick Chart

In financial education, charts are useful for explain the concepts with more intractive way. Different countries' teachers have created different types of charts. One of famous chart is candlestick chart. It has created by japan's teacher Munehisa Homma. It explain the trend of price of financial asset. Every day trading will be candlestick. For example 15 day trading is 15 candlestick in chart.

This chart has both line and bars. If we talk about the shares or stock. In chart, we will divide into four prices. Open price, close price, high price and low price of stock. With this chart, we can find the movement of price of shares or currency or any other financial security.

There are two types of attack which we can see in this chart. One is bullish attack which increase the price and second is bearish attack which decrease the price. So, where will price move, will show in the white bar betwenn the starting point and end point.

We can also see the hanging man which will be a bearish candlestick pattern at the end of uptrend. This the place where seller sell big sale of stock at the opening of market but buyer gives unfavorable reaction for keeping the price near at opening price.