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Candlestick Chart

"A price charting technique attributed to Honma Munehisa, a rice market trader in 17th century Japan. He believed that candlesticks reflect the market psychology and the investors’ emotions, which are essential in forecasting the next price move. The candlesticks display the Open, High, Low, and Close price in a pictorial way. The area between the Open and Close price is known as the body or real body of the candlestick. Its color, black or white, is strictly dependent on the relation between the Open and the Close price. The crowd psychology is revealed at a glance by the color of the body. A white body is bullish meaning that the buyers are in control and the sentiment is positive. Similarly, a black body is bearish meaning that the sellers are in control and the sentiment is negative. A white body simply means that the session closed higher than the Open price. Similarly, a black body means that the session closed lower than the Open price. The price range of the specific session is indicated by the vertical line that runs through the body. The highest price reached during the session is known as the High price, whereas the lowest price reached is the Low price. In the 1980s, Steve Nison introduced the Japanese Candlesticks to the West through his book Japanese Candlesticks Charting Techniques which revolutionized chart analysis."

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