Similar to bar charts, candlestick charts consist of four price points: open, high, low, and close. The high is marked by the top of the upper shadow or the real body if there is no shadow, while the low price is represented by the bottom of the lower shadow or the real body if there is no lower shadow.
Finally, the relationship of the closing price to the opening determines whether the candlestick is bullish or bearish. If the price closes above the opening price, the candlestick is bullish. On the other hand, if the price closes below the opening price, the candlestick is bearish. With colored candlesticks, you can instantly recognize bullish or bearish candlesticks.
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