What is a Japanese candlestick?

Japanese Candlesticks are a technical analysis tool that traders use to chart and analyze the price movement of securities. The concept of candlestick charting was developed by Munehisa Homma, a Japanese rice trader.

Are Japanese candlesticks better than bar charts?

Japanese candlesticks provide all the data a bar chart does, but in a superior aesthetical format. Japanese candlesticks allow better, faster technical interpretation of the charts. All the classic bar chart signals can be applied directly to Japanese candlesticks. Japanese Candlesticks visually display supply and demand in each candle body.

What is a candlestick pattern?

A candlestick pattern is a particular sequence of candlesticks on a candlestick chart, which is mainly used to identify trends. [citation needed] Heikin-Ashi (平均足, Japanese for 'average bar') candlesticks are a weighted version of candlesticks calculated in the following way: [citation needed]

What does a green Candlestick mean?

A green candlestick means that the stock is going up. In this case, the close price and open price are switched—the price started (opened) low and climbed up. The candlesticks represent the change in stock price over a given period of time. If you’re looking at a 10-minute chart, each candlestick represents 10 minutes.