Candlestick charts are a technical tool that packs data for multiple time frames into single price bars. This makes them more useful than traditional open, high, low, and close (OHLC) bars or simple lines that connect the dots of closing prices. Candlesticks build patterns that may predict price direction once completed.
Candlesticks represent a market’s opening, high, low, and closing prices.
The rectangular real body, or just body, is colored with a dark color (red or black) for a drop in price and a light color (green or white) for a price increase.
The lines above and below the body are referred to as wicks or tails, and they represent the day’s maximum high and low.
Charles uses Monthly, Weekly, and Daily candlesticks to understand momentum and ranges on the daily timeframe. To use for insights on the intra-daily timeframe.
Charles uses the 20, 50, & 200
Daily Simple Moving Averages as support resistance levels and a sign of momentum.
