CandlesticksCandlestick Charts (Japanese Candlesticks)
In 15th century the Japanese developed candlestick charting to analyse the price of rice contracts.
More recently candlestick charting has been applied to the financial markets.
Candlestick charts provide a fast, visual analytical tool for the technical analyst.
On ADVFN each candlestick represents a segment of time and the fluctuations of a stock price during that period.
Each candlestick is a mini chart synopsis of the time period, holding a surprising amount of information:
1) The opening point of the share price for that period.
2) The direction the moved during that period.
3) The point it finished at the end of the period.
4) The difference between the opening and finishing point for the period.
5) The highest point it reached during the period.
6) The lowest point it reached during the period.
All of this information can be viewed at a glance, without recourse to any calculation, the relative position to adjacent candles generating buy and sell signals that can be easily read.