How Do You Read Candlestick Charts When Trading Stocks

So how do you read candlestick charts when trading stocks?

Candlestick charts are probably the most advanced charts used by investors because they offer a lot of information.

The body of the candlestick represents the opening and closing stock prices for the day. The high and low stock prices are represented by the small wicks coming out of the top and bottom of the candle body. If the body of the candle is open or white it means the price ended higher than the open for the day. If the body of the candle is a solid color then the stock price closed below the open for the day.

As you learn more about using moving averages along with candlestick charts, you will find these charts to be very informational.

The chart below shows a common candlestick chart with moving averages.

candle stick chart with moving averages

Free Investing Tools: Free Stock Analysis | Free Investing TV | 10 Free Trading Lessons

Return from Candlestick Charts to Investing Resources

Emergency Funds:

Before you ever invest in stocks or other risky investments you should have an emergency fund in place. A great place to keep an emergency fund is ING DIRECT.

Best Online Broker:

The best online stock broker when it comes to cost and service is without a doubt Zecco.com.

Pick Quality Stocks:

If you are looking for the best technical analysis stock picking software then check out MarketClub.

Budget Money:

We have designed an easy to use spreadsheet that allows you to track your daily, monthly, and yearly income and expenses quickly and easily: Budget Spreadsheet