Linear graphics
Price movement can be represented as a line. Area and linear graphs are at your disposal for this. But most often Japanese candlesticks are used to visualize charts and analyze the current market situation.
japanese candlesticks
Candlesticks contain information about price changes over a certain period of time and consist of the body and wick.
The edge of the bodies displays the opening and closing price, while the upper and lower edges of the wick show the maximum and minimum price.
If the price of an asset increases, the candle will turn green. If the price decreases, the candle will turn red. A five-minute candle contains information about price changes during that period. You can also think of it as 5 one-minute periods that would contain the same data but on a different scale.
bar chart
The bars are designed with the same principle. They are made of vertical lines and two short perpendicular lines on the left and right. The perpendicular lines show the opening and closing prices and the vertical lines show the minimum and maximum price.
Why are candlesticks more popular?
Japanese candlesticks are popular among professional traders. The value of a candlestick chart is in its bold ease of use and depth of information with them. Traders get not just a picture, but a complete fundamental analytical instrument, without which most indicators are not possible.
We wish you a pleasant trading experience.
