TradingBeginner#Technical Analysis#Basics
Candlestick Chart
C
Definition
A financial chart used to describe price movements of a security over time, showing Open, High, Low, and Close values.
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Concept Diagram
Key Takeaways
1
Candlestick charts display price action using four data points: open, high, low, and close
2
Green candles indicate the close was higher than the open (bullish) while red indicates the opposite
3
Patterns like doji, hammer, and engulfing provide visual signals about market sentiment
4
Timeframes range from 1-minute for scalping to weekly for macro trend analysis
Practical Example
A daily BTC candle opens at $60,000, reaches a high of $63,000, dips to $59,500, and closes at $62,500. This large green candle with a small lower wick shows strong buying pressure and potential continuation.
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Related Terms
Trading
FVG (Fair Value Gap)An imbalance in price move shown by a gap between candles, often filled as price seeks to rebalance liquidity.
Market Structure
Order Block (OB)The last candle in the opposite direction before a strong directional expansion, marking institutional entry points.
Trading
VWAP (Volume Weighted Average Price)The average price an asset has traded at throughout the day, based on both volume and price. Used as a benchmark for institutions.
Trading
Point of Control (POC)The price level with the highest traded volume for a particular time period in the volume profile.
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