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A candlestick chart is made of two different elements, i.e., body and shadow.
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Candlestick vs. bar charts
Candlestick and bar charts- both are a way of representing the trading data. However, there is a difference. As compared to the bar charts, the candlestick is better as it’s easy to understand.
Candlestick presents the information with more colors and visuals. That means it highlights the price difference in a better way.
What is a candlestick chart?
Candlestick chart is a tool that is used by traders while trading binary options. It is an easy way of displaying the price movement of the assets traded in the options market in a better way.
Through a candlestick chart, a trader can quickly understand the open, close, high, and low price of a commodity in a given time. Since this chart helps a trader understand the price movement quickly, it has become a reliable tool for trading.
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Bullish Pattern
When the buyers dominate the market instead of sellers, a bulling pattern is formed. It means the closing price is more than the opening price. Green or white color represents the presence of bullish in the market.
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candlestick charts are not a new concept or method of analyzing the market. It’s been around for more than a decade. A Japanese rice trader created this successful trading chart back in Eighteen century to understand the price fluctuation of an item.
Munehisa Homma, the candlestick chart creator, understood that the emotions of traders play a significant role in fluctuating the price of commodities. Thus, he started candlestick charts, and it’s getting popular ever since.
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