Hey there, future stock market wizards! 🎉
We're about to unlock the secret language of stock charts! 🕯️
Candlesticks are a visual representation of stock price movements.
Each candlestick tells a story about the battle between buyers and sellers in the market. 📊
Imagine you're watching a tennis match 🎾
The candlestick is like the scoreboard, showing you who's winning.
When the price goes up, it's a point for the buyers, and the candlestick turns green. 🟢
When the price goes down, it's a point for the sellers, and the candlestick turns red. 🔴
It works just the same in the stock world! In addition to the color, there are 2️⃣ key components of candlesticks: Body and wick.
🕯️Body = the rectangle/square-like image.
🧵 Wick = the strings surrounding the body
💡 Body = price range between the opening and closing prices.
Top = closing or final price 🤑
Bottom = opening or starting price 💹
A long body indicates a greater increase in price, while a shorter body indicates a lesser change in price 📈📉
Similarly 💡 wicks = price range between the high and low stock price of the day.
Top = high of the day 📈
Bottom = low of the day 📉
These components of a candlestick form very interesting shapes or patterns! 🧩
These patterns tell investors what happened to a stock that day 🤔
Congrats on completing your first lesson on candlesticks! 🎓
You're on your way to becoming a charting champ!! 🚀🕯️
