Trading Stocks Read a Stocks Candlestick Chart
A beginners guide to stocks - how to read stocks charts. The 3 types of stocks charts are line chart, bar chart and candle chart - these commonly used stocks chart types are covered in this tutorials & beginners can learn how to interpret these charts from this tutorial.
This learn stocks tutorial will show you how to read these stocks candlesticks charts that are commonly used in the Stocks market.
How to Read Candlestick Charts for Beginners
Line Charts - stocks line charts draws a continuous line connecting closing stocks prices of a stocks.
Stocks Line Charts - How to Read Candlestick Charts for Beginner Traders
Bars Charts - stocks bar charts are displayed as sequence of OHCL bars. O H C L represents OPEN HIGH LOW & CLOSE. Opening stocks price is displayed as a horizontal dash on the left and closing stocks price as a horizontal dash on the right.
Stocks Bars Charts- How to Read Candlestick Charts for Beginner Traders
Main disadvantage of a bar charts is that it is not visually appealing, therefore most traders don't use them.
Candle Sticks Charts - these stocks candles charts use the same price data as bar charts (open, high, low, and close). However, they in a much more visually identifiable way which resembles a candle with wicks on both ends.
How to Analyze Candlesticks Charts
The rectangle part is known as body.
The high & low are described as shadows and plotted as poking lines.
Stocks Candlesticks Charts - How to Read Candlestick Charts for Beginner Traders
The color of the stocks trading candle is either blue or red:
- (Blue or Green Color Candles) - Stocks Prices moved up
- (Red Color Candles) - Stocks Prices moved down
Most stock trading platforms like the MT4 Stocks Platform, use colors to mark the direction of the stocks price. Candles colors used are blue or green: when the price moves up, color of candle stick is blue: when price moves down, color of candle is red.
Stock Candlesticks Charts Vs. Bar Charts
When Stock candles charts are used it is very easy to see if the stocks price moved up or down as opposed to when bar charts are used.
