Hello...folks in this article. I am going to share with you the easiest way on How To Read Candlestick Chart or How to Read Candlestick for Day Trading in Olymp Trade

I bet no one is ever going to share with you this easy trick for Candlestick Chart Reading

In this article I am going to cover:
  • What is Candlestick?
  • How to Read Candlestick Chart?
  • How to Read Candlestick Chart for Day Trading?
  • How to Read Bullish Candle?
  • How to Read Bearish Candle?
  • How to Understand the Candlestick Chart?
  • How to Study Candlestick Chart? & more



Candlestick Wiki 

What is the Candlestick Chart?


Candlestick is a graphical representation of the price movement of stocks, commodities, & more.  

The Candlestick Chart helps us to predict the market whether the Buyers or sellers are dominating the market.




The chart is said to be developed by Munehisa Homma, a Japanese Rice Trader.

He developed this chart to predict the price movement of rice.




However, the chart was introduced in the western world by Steve Nison, when he wrote a book name Japanese Candlestick Charting Technique.

CandleStick Chart in Olymp Trade

Before we move, Firstly login to Olymp Trade and you will land on the Olymp Trade Dashboard. 


Secondly, click on the chart icon 


Now, select Japanese Candlestick from there and that's it!!.

Candlestick Chart Reading 

Reading Candlestick Chart is very easy. There are basically two types of Candles:




1. Red | Bear | Seller: Who pushes the price DOWN



2. Green | Bull | Buyer: Who pushes the price UP



Now, coming to How to Understand CandleStick Chart, The Basic Funda of Candlestick says:







If the opening price is greater than the closing price a RED / SELLER / BEARISH Candle is formed

Similarly, If the Closing price is greater the Opening Price a GREEN / BUYER / BULLISH Candle is formed.

In Case You don't know:

Opening Price is the price of the Commodity | Stocks when the market is opened.

Similarly, Closing Price is the price of commodity | Stock when the market is closed.

To understand this concept more clearly, let me tell you an example,




Suppose, The price of Rice when you open the shop is 25 Rs per kg which is more than yesterday's price which was 17 Rs per Kg. 

Now,  If you are an intelligent seller you will get excited and try to SELL more and more, and thus How a Bearish Candle will be formed.

Similarly, Suppose, The price of Rice when you open the shop is 20 Rs per kg, and the next day the price drops down to Rs 16 per Kg. 

Now, If you are an intelligent Buyer you will get excited and try to BUY more and more. and thus How a Green Candle will be formed.

How To Read Candlestick Chart Easy Trick



Now, In this section, I will teach you the easiest way on How to Read Candlestick Chart or How to Study Candlestick Chart?

I bet no one will ever teach you this easy trick. 

To be honest there is only Two basic candlestick patterns that appears:

1. Small Wig with Long Body Candlestick



This is the most ideal Candlestick form.  

According, to the golden rule of Candlestick The more longer, more is the more clarity. 

Suppose, we see a continuous Small Wig with Long Body Candlestick or White soldiers than we can easily say that market is Bullish.

2. Small Wig with Small Body Candlestick
 

When we see this type of Candlestick It usually suggests confusion in the market.


Above, all are the perfect examples of Small wick and Small body. These patterns usually suggests the end of the trend.

Suppose, we are seeing Continous Bullish Candlestick and suddenly, a Hammer or Gravestone appears then we can assume that market trend can change.

3. Long Wick Small Body



Again, When we see this type of Candlestick It usually suggests confusion in the market.

Suppose, we are seeing Continous Bullish Candlestick and suddenly, a Bullish or Bearish Hanging Man appears then we can assume that market trend can change.





Winding Up:

So, this is the end of this article. I hope you have found this article helpful.

I hope you must have understood the concept if you have any problem. You can ask me at Honestdigitalreview@gmail.com.