零点课堂 | A Beginner's Guide to Candlestick Charts（2）

How do candlestick charts work?

The following price points are needed to create each candlestick:

1. Open — The first recorded trading price of the asset within that particular timeframe.

2. High — The highest recorded trading price of the asset within that particular timeframe.

3. Low — The lowest recorded trading price of the asset within that particular timeframe.

4. Close — The last recorded trading price of the asset within that particular timeframe.

Collectively, this data set is often referred to as the OHLC values. The relationship between the open, high, low, and close determines how the candlestick looks.

The distance between the open and close is referred to as the body, while the distance between the body and the high/low is referred to as the wick or shadow. The distance between the high and low of the candle is called the range of the candlestick.

How to read candlestick charts

Many traders consider candlestick charts easier to read than the more conventional bar and line charts, even though they provide similar information. Candlestick charts can be read at a glance, offering a simple representation of price action.

In practice, a candlestick shows the battle between bulls and bears for a certain period. Generally, the longer the body is, the more intense the buying or selling pressure was during the measured timeframe. If the wicks on the candle are short, it means that the high (or the low) of the measured timeframe was near the closing price.

声明：本文由 Binance撰写，零点财经收录，观点仅代表作者本人，绝不代表零点财经赞同其观点或证实其描述。

本文由 零点财经 作者：tao 发表，其版权均为 零点财经 所有，文章内容系作者个人观点，不代表 零点财经 对观点赞同或支持。如需转载，请注明文章来源。