How Do You Chart Stock Movements With Candlestick Charts?
Candlestick charts are one of the most popular ways to track stock movements on the stock exchange or Forex markets. Candlestick charts pack a lot of information into a simple symbol – the candlestick. Understanding the anatomy of a candlestick in a candlestick chart can make it easier to read how the market is trending, which allows you to make more informed decisions on trading stock and stock options. The easiest way to learn how a candlestick is built is to make a candlestick from the information in one day’s trading. Choose a stock to chart. For this exercise, we’re just going to make one candlestick, so you only need the closing information for one day’s trading for one stock. The chart shows the historical price data for Satyam Computers for May 18, 2009. You’ll need the opening price, closing price, high and low for the day. On a piece of graph paper, label the vertical axis with numbers from the lowest price of the day to the highest price of the day. Ex. The stock we’re chart
