Where do Candlesticks Come From? In the 1600s, the Japanese developed a method of technical analysisto analyze the price of rice contracts. This technique is calledcandlestick charting. Candlestick charts are simply a new way oflooking at price; they don't involve any calculations.
What do Candlesticks Look Like?Candlestick charts are much more visually appealing than a standardtwo-dimensional bar chart. As in a standard bar chart, there are fourelements necessary to construct a candlestick chart, the OPEN, HIGH,LOW and CLOSING price for a given time period. Below are examples ofcandlesticks and a definition for each candlestick component:



The body of the candlestick is called the real body, and represents the range between the open and closing prices.
A black or filled-in body represents that the close during thattime period was lower than the open, (normally considered bearish) andwhen the body is open or white, that means the close was higher thanthe open (normally bullish).
The thin vertical line above and/or below the real body is calledthe upper/lower shadow, representing the high/low price extremes forthe period (one period of time measures the duration of selling orbuying within the market). As a trader, you can use any time period youwant, time intervals may be a tick chart, 1 min, 5min, 10 min, 1 hour,4 hour, 1 day,…