1. Home
  2. Glossary
  3. Candlestick Chart

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."

Copyright © 2023 – All rights reserved.

NAGA is a trademark of The NAGA Group AG, a German based FinTech company publicly listed on the Frankfurt Stock Exchange | WKN: A161NR | ISIN: DE000A161NR7.

The website is owned by The NAGA Group AG and operated by NAGA Capital Ltd which is authorised and regulated by the Financial Services Authority Seychelles (FSA) under licence No. SD026. The registered address of CT House, Office 9A, 2nd Floor, Providence, Mahe, Seychelles.

RISK WARNING: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. This is not investment advice. Trading with NAGA Trader by following and/or copying or replicating the trades of other traders involves high levels of risks, even when following and/or copying or replicating the Lead Traders. Such risks include the risk that you may be following/copying the trading decisions of possibly inexperienced/unprofessional traders, or traders whose ultimate purpose or intention, or financial status may differ from yours. Before making an investment decision, you should rely on your own assessment of the person making the trading decisions and the terms of all the legal documentation.

Restricted countries: NAGA Capital Ltd does not provide services for the residents of certain countries, such as Afghanistan, Albania, American Samoa, Anguilla, Australia, Barbados, Belgium, Bermuda, British Antarctic Territory, British Indian Ocean Territory, British Virgin Islands, Burkina Faso, Cambodia, Canada (including Quebec), Cayman Islands, Central African Republic, Congo, Democratic People`s Republic of Korea, Democratic Republic of the Congo, Falkland Islands, Gibraltar, Guam, Haiti, Iran, Iraq, Isle of Man, Israel, Japan, Jamaica, Jordan, Libyan Arab Jamahiriya, Mali, Monaco, Montserrat, Morocco, Mozambique, Myanmar, Nicaragua, Philippines, Pitcairn Island, Puerto Rico, Russian Federation, San Marino, Senegal, Serbia, Somalia, South Georgia and the South Islands, South Sudan, Sri Lanka, St. Helena, St. Helena dependencies (Ascension Island, Tristan da Cunha), Syrian Arab Republic, Tanzania, Trinidad and Tobago, Tunisia, Turkey, Turks and Caicos Islands, Uganda, Ukraine, United Kingdom, US Minor Islands, US Virgin Islands, USA, Vanuatu, Yemen, Zimbabwe.

Member of NAGA Group AG that is publicly listed in Frankfurt Stock Exchange.
close icon