Candle patterns 

So coming to the basic topic of what we see in the chart are the patterns. The patterns might be line, candle and so on. Here we will be discussing about candle patterns.

As in line chart we can see only the end price of the day but in candle patter we can see closing price, opening price, and highest and low price for the day. 

The basic 2 types of candles are explained below

 1.Bullish candle-

       If the price goes up on a particular time period then its bullish candle which is indicated in green color by default. Here as we can see in the figure the middle most part is the body of the candle and the top of the body is where the closing price is shown and bottom of the candle body is opening price is shown. The line above and below the candle are called wick also called as shadow where top line indicated highest price of the day and bottom most part of wick indicates lowest price of the day.

Note:

For example - if the opening price is 500 and the closing price is 540, with 560 being the highest price of the day and 480 being the lowest price of the day. Then it is shown as below.

 

 Bearish candle-

   If the price goes down on a particular time period then its bearish candle which is indicated in red color by default. Here as we can see in the figure the middle most part is the body of the candle and the top of the body is where the opening price is shown and bottom of the candle body is closing price is shown. The line above and below the candle are called wick also called as shadow where top line indicated highest price of the day and bottom most part of wick indicates lowest price of the day.

Note: If the wick is missing from above then highest price was same as opening price and if the wick is missing from below then lowest price was same as closing price.

For example - if the opening price is 540 and the closing price is 500, with 560 being the highest price of the day and 480 being the lowest price of the day. Then it is shown as below.