Silent Reading in Market Movement
In the world of financial markets, stories are not told with words, but with candles. Silent candles stand on the lines of charts, telling tales of the struggle between buyers and sellers, and whispering to the insightful analyst about what is to come, if they listen well.
The Beginning: Basics of Charts
Charts are the visual language of the markets, and the most famous of them all: the line chart, the bar chart, and then the most used and influential: the Japanese candlestick chart.
Each candle represents a time period, revealing four secrets: the opening price, the closing price, the highest point, and the lowest point. The magic lies in its shape, as its color (green/upward, or red/downward) tells you about the state of the market, and its upper and lower wicks reveal hidden struggles that numbers alone cannot show.
