What is a bearish Candlestick?

This is the definition of a bearish candlestick: a bearish candlestick is a candlestick which has a lower closing price than the opening price in a given period or timeframe. In other words, price opened at a high price and ended lower. the closing price is lower than the opening price.

What does the'real body' on a candlestick mean?

The wide part of the candlestick is called the "real body" and tells investors whether the closing price was higher or lower than the opening price (black/red if the stock closed lower, white/green if the stock closed higher). Candlestick charts display the high, low, open, and closing prices of a security for a specific period.

What is a candlestick chart?

Candlestick charts are a technical tool that packs data for multiple time frames into single price bars. This makes them more useful than traditional open, high, low, close (OHLC) bars or simple lines that connect the dots of closing prices. Candlesticks build patterns that may predict price direction once completed.

What are candlesticks based on?

Candlesticks are based on current and past price movements and are not future indicators. Let’s first take a look at the basics of candles so you can understand the various parts of a candlestick. A daily candlestick represents a market’s opening, high, low, and closing (OHLC) prices.