Candlestick Chart

Definition

A candlestick chart is a visualization of a financial day’s open, high, close, low. The real body is the widest part of the candlestick. When the real body indicates filled or colored black that, means the close, was lower than the open while if the body is not filled or colored green that, means the close is higher than open.

Why do you need it?

We need this chart to determine the possible price movement. As a candlestick represents one day, due to which for 20 financial days of a month, there are 20 candlesticks representing each day. It helps to analyze the short-term forecast.

What kind of data you can visualize with it?

This chart is best suited for daily financial-data. If your dataset contains variation in price per day, then it could be beneficial. By this, you can see the performance of the prices of the selected stocks. This would help to depict the further movement of the price range.

Category

  • Uncategorized

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