How are candlestick patterns formed?
Candlesticks are graphical representations of price trends over a given time period. Typically created by the opening, high, low, and close prices of a financial instrument. If the opening price is above the closing price, a filled (usually red or black) candlestick is formed.
types of candlesticks
There are different types of candlesticks, they are as follows:-
1. White/Green Candlestick
A white or green candlestick indicates that the security's price closed at a higher level than its opening level. It is a point representing a positive or bullish period on the candlestick chart of a security.
2. Long White/Green Candlestick
The green color of the candle's body indicates that the closing price is higher than the opening price. Whereas a red candle is a reversal where the opening price is higher than the closing price. However, the color of the candle has no significance as a reversal keeps.
