Ultimate Guide to Candlestick Charts: Candlestick Charts v. Bar Graphs

November 17th, 2021 If you remember from our emails last week, we started talking about candlestick charts. We went over what was a candlestick, where they originated from, and what they tell us. This week, we will be diving in and looking at a sample candlestick chart. Candlestick Chart Example Let’s look at the candlestick chart below: [img-John-Persons-03]( One thing that is important to know is that candlestick charts can dictate market prices in days, hours, or even minutes. In this candlestick chart, we are measuring the value of an asset in 15 minute intervals over the span of 9 hours. Let’s start by looking at the 2:00 hour. The red candlestick at the 2:00 line indicates the value of the asset from 2:00 to 2:15. We notice that the candlestick is red, so we already know that the value of the asset is down. The fact that there is a red square tells us that the value of the asset opened at a lower price than the candlestick to the left. Remember from our last email that the top of the red square tells us what price the asset opened at. The top line signifies how high the value went. Meanwhile, the bottom of the red square tells us what price did the value close at, while the bottom line represents how low the asset’s value went. Do you notice something about the asset’s value from the 2:00 to 3:00 hour? The value of the asset was down for the whole hour. Now, let’s look at the 5:00 hour. The candlestick that is on the line means this asset was measured from 5:00 to 5:15. The green candlestick means the value of the asset is up. Unlike the red candlestick, the bottom of the green candlestick signifies where the price opened and the top of the candlestick represents the closing price. Like the red candlestick, the top line shows how high the asset’s value went, while the bottom line shows how low the asset’s value dropped. The green candlestick next to the one we are looking at shows the asset’s value from 5:15 to 5:30. What do you notice about the asset during the 5:00 hour? You will see that during the 5:00 hour, the asset’s value was up. Practice reading the candlestick chart from the 7:00 hour to the 11:00 hour. Use what we’ve learned about candlesticks so far to see how the asset’s value moves up and down, and how the candlestick chart interprets that. Candlestick Charts vs. Bar Charts Bar charts and candlestick charts show the same information and visually appear the same. However, investors find candlestick charts much easier to read, thanks in part to the color-coding of the bars and the thickness of the real bodies, which make candlesticks much easier for investors to reach when they are looking for the high and low prices. Take a look at a candlestick chart and bar chart below to see how they differ. [img-John-Persons-05]( Next week, we’re going to start going over different patterns that you might find in a candlestick chart, so make sure you stay subscribed to our emails so you can join us for that! The kitchen of the future... Miso's AI-powered kitchen assistants could possibly increase quick service restaurant (QSR) profit margins by 3x.[Look into this Miso's delicious potential before Nov. 18.]( This email is a paid advertisement. It is for a product or service that is not offered, recommended or endorsed by Tips4Traders.com and neither the company nor its affiliates bear responsibility or control over the content of the advertisement and the product or service offered. There is a very high degree of risk involved in trading. Past results are not indicative of future returns. Tips4Traders.com and all individuals affiliated with this site assume no responsibilities for your trading and investment results. The indicators, strategies, columns, articles and all other features are for educational purposes only and should not be construed as investment advice. Information for any trading observations are obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. Your use of the trading observations is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness of the information. By downloading this book your information may be shared with our educational partners. You must assess the risk of any trade with your broker and make your own independent decisions regarding any securities mentioned herein. Affiliates of Tips4Traders.com may have a position or effect transactions in the securities described herein (or options thereon) and/or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies. --------------------------------------------------------------- This email was sent to {EMAIL} by Tips4Traders 495 Town Plaza Ave | Ponte Vedra | 32081 [Forward to a friend]( | [Unsubscribe](