What Is A Candlestick?

 A candlestick is a type of price chart used that displays the high, low, open, and closing prices of a security (Stock, Index, Currency, or Commodity) for a specific period. The Japanese rice merchants began using technical analysis to trade rice in the 17th century and to track market prices and daily momentum hundreds of years before becoming popularized in the United States.

The wide part of the candlestick is called the "real body" and tells investors & traders whether the closing price was higher or lower than the opening price (red if the stock closed lower, green if the stock closed higher).In order to create a candlestick chart, you must have a data set that contains open, high, low, and close values for each time period you want to display.

Doji Candlestick 

The doji represents indecision in the market. A doji is a key trend reversal indicator. Doji form when a security's opening and closing are virtually equal. The length of the upper and lower shadows can vary, with the resulting candlestick looking like a cross, inverted cross, or plus sign.

Hammer Candlestick 

A hammer is a price pattern in candlestick charting that occurs when a security trades significantly lower than its opening, but rallies within the period to close near opening price. A hammer is a type of bullish reversal candlestick pattern, made up of just one candle, found in price charts of financial assets. The candle looks like a hammer, as it has a long lower wick and a short body at the top of the candlestick with little or no upper wick.

                        

Hanging Man

A hanging man is a bearish candlestick pattern. This pattern occurs mainly at the top of the uptrend and can act as a warning of a potential reversal downward. The hanging man shows that selling interest is starting to increase.

Shooting Star

A shooting star is a bearish candlestick with a long upper shadow, little or no lower shadow, and a small real body near the low of the day. The size of the upper shadow should be at least twice the length of the body and the high/low range should be relatively large. The candle falls into the “hammer” group – hanging man, hammer, and inverted hammer.

                          

Spinning Top

A spinning top is a candlestick pattern with a short real body that's vertically centered between long upper and lower shadows. The candlestick pattern represents indecision about the future direction of security. In other words, a spinning top candlestick if often regarded as a neutral candlestick.