| Have you ever wondered how stock market | | | | bottom. |
| analysts make their judgment on selling and trading | | | | And also to predict the stock market, you must also |
| shares of stocks? It is really difficult for them to | | | | give importance to its formation and analysis: |
| determine what shares will sell the most or what | | | | Candlestick Formations. It is the combination of |
| stock will be on a surplus. Understanding the flow of | | | | different candlesticks that represents a day in a |
| the market is needed to predict the future sales and | | | | weekly or monthly interval. This shows the |
| lead them to more profit; but how they will | | | | movement of demand in the stock market. Also the |
| understand the flow if they are only seeing numbers? | | | | formation signifies the flow of the stock market, |
| This is why candlestick patterns are important | | | | when is the time that there is a high demand or |
| because it illustrates how the market is running and | | | | when is the time of high surplus. This formation |
| by this, it is an essential tool brokers use in order to | | | | greatly helps the analysts and brokers to decide |
| be triumphant in the battlefield of stock market. | | | | properly on which stocks they will sell or retain. |
| Candlestick charts are said to have been developed | | | | Candlestick Analysis. It is the resulting conclusion or |
| in the 18th century by Homma Munehisa, a Japanese | | | | idea on how stock market had flown. This contains |
| trader. The charts gave the legendary trader and | | | | information on when there is a high demand, how |
| others an overview of open, high, low, and close | | | | high the demand on that time was, and the interval |
| market prices over a certain period of time. Due to | | | | or length of time when there is a high demand or |
| the level of ease in reading and understanding the | | | | even a high surplus. This is actually a statement on |
| graphs, this style of charting gained much popularity. | | | | what the candlestick pattern is depicting. With this, |
| And also the resulting patterns provided a reliable | | | | candlestick analysis is an important tool brokers use |
| prediction of future demand. | | | | to predict the market accurately. |
| Candlesticks are made of the body, and an upper | | | | Certainly, stock market is not a place for everyone |
| and a lower shadow or wick. The wick signifies the | | | | to enjoy and definitely not the place to make some |
| highest and lowest traded prices of a security during | | | | costly errors. The place is so dynamic that a small |
| the time interval represented. The body illustrates the | | | | mistake can trigger great losses. It is important to |
| opening and closing trades. If the security closed | | | | have a great knowledge regarding the candlestick |
| higher than it opened, the body is unfilled or white, | | | | patterns or formations, much more the analysis the |
| with the opening price at the bottom of the body | | | | latter will give. Because if not given much importance, |
| and the closing price at the top. If the security closed | | | | brokers and investors may not gain profit out of this |
| lower than it opened, the body is black, with the | | | | market place. |
| opening price at the top and the closing price at the | | | | |