Introduction Of Japanese Candlestick Technique

Sokyu Honma, who was a rice future trader, developed the Japanese Candlestick technique. This Technique is now popular all over the world.

Construction Of Candlestick
Open, High, Low, Close Prices are used to create Candlestick Charts. The X Axis represents Time (Days/Weeks/Month/Minutes) while Y Axis represents prices. By using the Open, High, Low & Close Price data of any stock, any one can construct Candlestick Chart.

Parts Of Candlestick

Every Candlestick can be divided in to three parts.
1> Upper Straight Line
2> Body
3> Lower Straight Line

The highest point of Upper Straight Line is the High Price. The Lowest Point of Lower Straight Line is Low Price.

If the close price is greater than open price the body of candlestick has White Body.



If the open price is greater than the close price then the candlestick has Black Body.