Candlesticks and their Combinations
Candlesticks and their C ombinations H ow do most people visually imagine the price of an asset over time? I'm sure that most people imagine a wavy horizontal line that changes and curves up and down every second. In order to structure and give meaning to this constantly changing line, different types of price charts have been invented. The most popular types are Japanese candlesticks and bars. What is common between these two chart types? Unlike the traditional linear chart, Japanese candlesticks and bars use as many as four data points for a given period of time instead of one: 1. The opening price when the time period began. 2. The highest point ...