How are candlesticks formed? 

Candlestick form by the four factors like the open, high, low and close price of the instrument.

The candle is a 5,10,15 -minute candle shows that the price movements of securities in that minutes.

We choose 5 minutes time frame then the candle formed within 5 minutes. Similarly, the time frame(5,10,15,30 minutes, 1,2,3,4hours) we use, stock market data divided into respective intervals.  

It shows data on daily, weekly and monthly time frames. 

How much candles show data, it all depends on the time frame. 

     Key points. 

•  Candlestick is a medium to describe the financial market's share or bond price in a specific time frame. 
• The market is driven by emotion, it appears in candles. 
• Candles help to find appropriate buy and sell prices of shares. 
• Candles give ideas about the movements of the financial market. 

History

Munehisa HOMMA is a rice trader in Japan. He believed that prices follow Some patterns.  Steve Nison was introduced to the Western world by his book Japanese candlestick charting techniques. 

Structure & formation of green and red candles. 

When price increases it form a green colour candle and the price decreases it forms a red candle.

Market have random moves it difficult to predict. Sometimes price increase and sometimes decrease. 

The formation of many candles creates a pattern. Pattern generates charts. 

In the case of the red candle upper body's end show, an open price and the lower body's show a close price.

Green and Red candles are randomly formed. 

Structure of candle

Structure of red candle 

Structure of green candle 

Let the example of Sun Tv Network Limited

The open price is 470.00 

close price is 458.25 so it appears red. 

 High at 476 

 low at 452.00 

Green candles show an increase in securities prices. Candle open at 462.00

close 474.90,

high 478.60 and

 low 458.65. 

 To open any share candle, you go to your demat account and select stock. It gives some fundamental analysts information along with charts. Click the zoom out at the bottom to open the chart. 

How do you select alternate candles?

Go to your broker app, click on the candle icon it shows all candles. Then select your favourite candle. 

Types of candle 

1. Candlestick 
2. Hollow candle
3. Heikin Ashi
4. Bars

Candle % growth. 

Calculate the % growth of the candlestick. 

Open left slide section indicates by the blue arrow. Select Date and Price range and mark star. 

Then tap on it, it shows two bubbles. Select the length of the candle it automatically calculates the percentage of the candle. 

It is applicable on any time frame either 5minutes or 1 week. 

The green candle shows positive growth whereas the red candle show negative growth. 

Best candle for intraday trading

Definition of stock market

Candle pattern 

These are some famous candle patterns.   

1. Engulfing pattern    

A bullish and bearish engulfing pattern is formed based on the size of the green and red candle. 

Engulfing pattern is the combination of red and green candles. 

Bullish engulfing indicates to buy stock and bearish engulfing indicates to sell stock.

2. Evening