In the name of god Abstract: what is the candle? IF you are familiar with different financial markets such as the digital currency market, have you ever heard the name of candle or candle stick.
What is a candle?
In words means candle and candlestick means candlestick. A candlestick is a type of price display in a certain interval. Candlestick charts are chart in which the price is displayed candlestick. Candlestick charts are one of the most important price display methods.
This method of price display was created by a tapanses person named Homma around 1750 AD , homma discovered that there is relationship between the supply and demand prices of rice, for this reason he used this type of price display to check the price of rice.
Candlestick charts today compared to other chart vieing methods they are the most used and have become a global standard on sites like trading view also however other price display methods are supported but most people use the candlestick chart for analysis candles can determine the price due to the existence of three parts of the Body.
The component of candle are:
opening price: the first price at which the candle starts is called the opening price of the candle. The opening price of each candle is usually equal to the closing price of the previous candle; but usually the candles are in stock market or markets that are closed for a while.
closing price: the last price at which a candle closes is called the closing price. You should note of a candle is not yet fully formed; that is if the candlestick is still fluctuating the closing price will be equal to the spot price.
the highest price:the highest price that a candle reaches during its swing is called the highest of the candle.
lowest price:the lowest price seen in a candle is called the lowest candle price.
candle body: the distance between the opening and closing price of candlestick is called the candlestick body. The body of the candle and the shadow of the candle can be considered as the most important elements in the analysis of candles. In the analysis of candles, the body shows strength;
In a simpler language a long body indicates strength and small body indicates lock of decision in the market.
high shadow:the distance between the highest price and the body of the candle is called the upper shadow; in other words in bearish candles to the distance between the opening price of the candle with the highest price and in bullish candles to the distance from the closing price to the highest price it is called upper shadow.
lower shadow: the bottom shade in the candle the exact opposite of the top shade.
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