Candlestick Charting

Japanese candlesticks are an essential trading strategy espoused in the BetterTrades system.

Unlike a simple line chart, which shows only a stock's price, candlestick charting visually shows a stock's opening price, closing price, and the high and low points of the day. Using a candlestick chart is like having the stock's daily report rolled out before your eyes.

Using candlestick charts is an important technical skill to learn. The length of the candlestick is determined by their range of selling prices. If a stock has a wild, volatile trading day, it will have a long candlestick. If it opens and closes in the same place, it will look like a "plus" sign; this candlestick is known as a "doji."

If a stock is bullish, its body will be white. If a stock is bearish, it will have a candlestick that is black.

Candlesticks can be interpreted on a stock chart to show trends. Combined with other analytical tools, candlesticks can provide times to enter and exit a trade.

Short Sells | Candlestick Charting