Candlestick charts are rectangular in shape, similar to that of a candlestick, which have been popular for hundreds of years thanks to Japanese traders. Candlesticks depict a wave of price movement over a specified period of time to determine chart patterns using 4 major components:
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Open price
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Close price
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Low price
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High price
Understanding these price movements helps traders understand the market sentiment regarding a financial instrument, and can aid in making well informed predictions about the direction a stock price will be heading in the future.
