Reading Candlestick Patterns
Green Candles | Red Candles | Dogi
Learn how to use covered calls to reduce the price of buying a call or to hedge for the downside potential of your existing stocks.
Candlesticks | Price Action
Candlestick Patterns
Learn the basics of reading candlestick patterns
A green candles means the price movement was positive for the period or day
A red candle means the price movement was negative for the period or day
- Bottom is the open of the period for a green wick
- Bottom is the close of the period for a red wick
- Top is the close of the period or day
- Top of wick is the top range period or day
- Bottom of wick is the bottom of the period or day
- Green means the price movement is positive for the period or day ( started lower than the close )
- Red means the price movement is negative for the day ( started higher than the close
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Option Basics
Understanding Candlesticks
The height of the body
- tells the change over the day
Doji candlestick
- shows indecision
- Neither red nor green
- Shows a cross – horizontal line with a wick up and down
Green with wick on top
- closed higher than started with a upward spike at the top – indicates profit taking
- Peaked at some time during the day but then closed at the top of the box
Red with wick at the bottom
- Closed lower than ended but fell at some point of the day – indicates buying dips
- Dropped below the open at some point during the day
The bigger the upper wick – the more profit taking
The bigger the lower wick – the more buying the dip