What is a daily candlestick chart?

Many algorithms are based on the same price information shown in candlestick charts. Emotion often dictates trading, which can be read in candlestick charts. Just like a bar chart, a daily candlestick shows the market's open, high, low, and close prices for the day.

Why do traders use Candlestick charts?

Traders use candlestick charts to determine possible price movement based on past patterns. Candlesticks are useful when trading as they show four price points (open, close, high, and low) throughout the period the trader specifies. Many algorithms are based on the same price information shown in candlestick charts.

What are low and high caps on a candlestick chart?

The Low and High caps are usually not present but may be added to ease reading. An hourly candlestick shown with order book depth on a currency exchange. A candlestick chart (also called Japanese candlestick chart or K-line ) is a style of financial chart used to describe price movements of a security, derivative, or currency .

What is a candle Trend chart?

Visually, the Candle Trend chart resembles closely the Candle chart. However, their coloring algorithms are different. The coloring is applied based on the open and the close prices on both the current aggregation period and the two adjacent aggregation periods.