In pass time, Japanese use a candlestick to analysis a rice trade. The secret of the candlestick reveal in Steve Nison hand. He researched, studied, lived, breathed, ate candlesticks, began writing about it and slowly grew in popularity in 90s. He has become recognized as the leading expert on their interpretation.
Each candlestick represent a period of data. The figure below displays the elements of a candlestick:
Candlesticks are formed using the open, high, low and close.
- * If the close is above the open, then a hollow candlestick (usually displayed as white) is drawn.
- * If the close is below the open, then a filled candlestick (usually displayed as black) is drawn.
- * The hollow or filled section of the candlestick is called the “real body” or body.
- * The thin lines poking above and below the body display the high/low range and are called shadows.
- * The top of the upper shadow is the “high”.
- * The bottom of the lower shadow is the “low”.
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