Money Classic investment advisers are the leading investment advisory company providing accurate and authentic share market tips. The share market tips provided by us are completely based on technical tools like indicators, oscillators and chart patterns. There are various Chart patterns including bar chart, line chart, and Candlestick chart.
Candlestick charts show the same information as a bar chart but in a different graphic format. Candlestick bars even now show the high-to-low range with a vertical line. However, in candlestick charting, the larger block in the middle indicates the range between the opening and closing prices.
Traditionally, if the block in the middle is filled or colored in, then the share closed lower than it opened. In our example, the ‘filled color’ is black. For our ‘filled’ blocks, the top of the block is the opening price, and the bottom of the block is the closing price. If the closing price is higher than the opening price, then the block in the middle will be hollow, or unfilled. In our example, you can see the consecutive individual days of losses (filled blocks) that make up the major downtrend.
When it reversed to the upside in October, we start to see hollower, unfilled blocks. The purpose of candlestick charting is strict to serve as a visual aid since the exact same information appears on an OHLC bar chart. The benefit of candlestick charting is that you can simply spot strength of trends as indicated by filled or unfilled blocks, where the bar charts may be visually less clear.
Not all candlestick charts are drawn the same. Some charts use red print for down days and green for up days. Or, depending on the background color of your chart, you may see up days as filled blocks and down days as unfilled blocks – especially if your background is a dark color. Thus it would be good for you to take expert advice. Money Classic Investment Advisers is the platform where you will get all the solutions to the trading related problems via share market tips provided by us.
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