| || What is the definition of Candlestick Charting? |
Candlestick charting is a form of price representation in the financial markets where price action is depicted in the form of candle bars with open, high, low and closing prices. It was developed by the Japanese in the 17th century as a way of trading rice contracts.
| || TradersLaboratory decodes Candlestick Charting |
Candlesticks are simply a way of representing price data in a way that traders can easily interpret. Individual candlesticks only give an indication of what is happening in the market in the present time, but candlestick patterns (two or more candlesticks) can be used as determinants of future price action and are a great tool of technical analysis.