Introducing Candlesticks Charts & Patterns: The best way to track your Stocks

Candlesticks charts are a type of chart that uses candlesticks to display the price movement of an asset. Candlesticks are graphical representations of price patterns, which are used to help traders and investors determine whether a stock or other financial instrument is trending up or down. Candlesticks charts have been in use since the early 1600s in China, where it was used as a tool for predicting earthquakes. The name "candlestick" comes from the Chinese word meaning "four candles". These candles represent periods of time during which prices were either rising or falling by more than 10%.
It consists of three parts: open, high, low and close (OHLC). The OHLC line represents the opening price for an asset or security; it usually has two ticks in it (one on top and one on bottom), which represents the first increment change in price from its opening value. The second tick represents the highest point during trading hours while third tick represents lowest point during trading hours. These three points are referred to as "candlesticks."

Candlesticks charts work by displaying two lines: one for the high and low prices, and another for the open and close prices. The candlestick itself is a wedge-shaped chart with two tails representing closing prices at upper and lower bounds. Each tail has its own color: red or green, depending on whether it's up or down, respectively.

The open and close lines are also shown as wavy lines that connect at various times throughout the day (or week). These lines represent movements in volume related to buying or selling activity for each stock during those times--they're called "candlesticks" because they resemble candles set within a candle holder!

Candle stick Patterns:

Candlesticks patterns are a way of analyzing the price movements of a security. They are used to predict future price movements and identify changes in trends. Candlestick charts are used to analyze any type of security, including stocks, mutual funds, and currencies.

The candlestick chart is one of the most popular types of trading charts because it allows traders to see at a glance whether an asset has been trending upward or downward over time. The candlestick chart also shows where each day's high and low prices occur relative to other days' highs and lows (the open/close).

Candlestick patterns include:

Bullish: Open higher than close; closes below open on same day; generally lasts for several days before reversing course

Bearish: Open lower than close; closes above open on same day; generally lasts for several days before reversing course

Types of Candle Sticks Chart

There are several types of charts available to help you organize your data. The most popular types of charts include line, bar, and area.

Line charts are used to show trends over time and can be used to compare different groups of data. Line charts can be used to show how many people in a group have a certain characteristic or how much money is spent by those same people over time.

Bar charts are similar to line charts except that they show all data at once rather than over time. Bar charts are useful for comparing two sets of numbers or looking at how one variable changes over time when another variable changes at the same time (e.g., if you're trying to determine whether there's been an increase in sales due to increased advertising).

Area charts are useful for showing how one variable changes when another variable changes at the same time or when there's an interaction between two variables (e.g., if you want to see whether there's been an increase in sales due to increased advertising).

There are a variety of chart patterns, each with its own purpose.
Head and shoulders: This pattern is considered to be a reversal pattern and it occurs when the price rises above its head, then falls below its shoulders.

Double top: This type of pattern occurs when there is an upward movement followed by a downward movement.

Triple top: This pattern can be seen in the case of a downward trend that has been followed by an upward trend.

Gap up gap down: When there is a gap between two peaks in price action, this can be seen as an indication of an upcoming reversal or consolidation period.

Falling wedge: A falling wedge is formed by two parallel lines that have one point higher than another point (or head) at the bottom end of each line).

Chart patterns are a way to help you identify trends in the markets. They can be used to identify patterns in price movement and can help you make better investment decisions.

Here are some examples of common chart patterns:

Head and shoulders: This is when there's a high price point followed by a low price point. It's often referred to as "the death star" because it looks like Darth Vader's helmet from Star Wars.

Triangle: This pattern shows price movements that have three peaks and valleys over time. The peak height is usually between two thirds and four fifths of the way up from base line, while the lowest point is about one fifth of the way down from peak height.

Pipe cleaner: This pattern shows price movements that have five peaks or valleys over time--with each peak or valley being higher than the previous one (think of it as a pipe cleaner that gets longer each time it bends).

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