Candlestick Charting

There are two main types of share chart: They are the Bar chart and the Candlestick chart. The candlestick chart is compose of many individual candles. Each candle represents a trading period which can be 1 day, 1 week or 1 month…etc. And similar to the Bar chart, each candle tells us 4 different price information about that share. As shown by the two candles above, the thick part of the candle is called the real body. This shows the range between the opening and closing price. When the body was white in colour, it means the closing price is higher than the opening price. If is it black in colour, it means the closing price is lower than the opening price. The thin lines above and below the body are called wicks or tails or shadows. The tip of the upper wick shows the highest price for the period and the bottom of the lower wick represent the lowest price for the period.

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