What is a candlestick?


A candlestick is a type of price chart used in technical analysis that displays the high, low, open, and closing prices of a security for a specific period.


Open – This is at the point where the session opened. On a bullish candle, the open is at the bottom of the body. On a bearish candle, the open is at the top of the body.


Close – This is at the point where the session closed. On a bullish candle, the close is at the top of the body. On a bearish candle, the close is at the bottom of the body.


High – This is the market reached it’s the highest price during the trading session. This gives you an idea of how high the market moved in one trading period.


Low – This is the market reached it’s the lowest price during the trading session. This gives you an idea of how low the market moved in one trading period.


Reading a Candlestick Chart

  1. If the upper wick on a red candle is short, then it indicates that the stock opened near the high of the day.
  2. On the other hand, if the upper wick on a green candle is short, then it indicates that the stock closed near the high of the day.

Generally speaking, the longer the body is, the more intense the buying or selling pressure. Conversely, short candlesticks indicate little price movement and represent consolidation. Long white candlesticks show strong buying pressure. The longer the white candlestick is, the further the close is above the open.
Candlesticks can come together to form various patterns, telling a trader about the market sentiment and price trends. They are great tools to ascertain the profit potential and market risks involved.


What is Bullish in Forex?

Simply put, bullish means that a trader or investor is of the opinion that the price of a security will increase from where it currently is. Concerning a financial market, a bull market implies that the overall market is in an uptrend, marked by higher highs and lower lows, and that it will keep rising.

Bullish traders believe, based on their analysis, that a market will experience an upward price movement. Being bullish involves buying an underlying market – known as going long – in order to profit by selling the market in the future, once the price has risen.

Is Bullish good or bad?

Bullish on the market or economy

Or, if you have a bullish view of the U.S. economy, it means you believe there will be significant GDP growth and other positive economic developments. Just like stocks, bullish views on the entire stock market or economy can be of the short-term or long-term variety.


What is Bearish in Forex?

Bearish markets follow a downward trend as investors sell riskier assets such as stocks and less-liquid currencies such as those from emerging markets. In a bear market, traders are looking to enter the market when prices are falling so that they can buy once they believe that market has reached its peak.

Being bearish in trading means you believe that a market, asset or financial instrument is going to experience a downward trajectory. Being bearish is the opposite of being bullish, which means that you think the market is heading upwards.

Is Bearish good or bad?

For binary options traders, bullish and bearish are important terms. … Invest in rising prices during bull markets and when traders are bullish about an asset. Invest in falling prices during bear markets and when traders are bearish about an asset.