Mastering Stock Charts A Beginner’s Guide
Understanding the Basics: Candlesticks and OHLC
Before diving into complex chart patterns, you need to grasp the fundamentals. Stock charts primarily use candlestick charts, which represent price movements over a specific period (e.g., daily, hourly). Each candlestick displays four key data points: Open (the price at the beginning of the period), High (the highest price during the period), Low (the lowest price during the period), and Close (the price at the end of the period). Understanding how these four points interact within a single candlestick, and across multiple candlesticks, is crucial to interpreting price action. A green (or white) candlestick