How To Read Stock Candles

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.

How to read stock candles. When a stock is in an uptrend more hollow candles are present. Bar charts just above and below the real body are the shadows or wicks the shadows show the high and low prices of that day s trading. Same as what you see in the high price there should be a wick shadow but in this case it s in the lower part of the candle. If the upper shadow on a down candle is. This displays the lowest price traded during the period timeframe of the candle.

The chart consists of individual candlesticks that show the opening closing high and low prices each day for the market they represent over a period of time. When a break in a trend line occurs you may experience heavy selling.