How to Read Candlestick Stock Charts

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When reading candlestick stock charts, the body of the candlestick will represent the opening and closing prices, the wick will represent the trading range, and the color of the candlestick will represent whether the trading was positive or negative for the day. Get more information from a candlestick stock chart than from a typical line chart with information from a financial consultant in this free video on stock charts.

Part of the Video Series: Investment Tips & Financial Planning
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Video Transcript

Do you like investing using insurance? Are you a line chart guy or maybe a candlestick chart person? What do they mean? Well the body in the candlestick represents the opening and closing prices during the day. The wicks, the lines coming off the ends, represents the trading range for that day. How high did the stock go and how low did the stock go. If the candlestick is white, that means that the price moved up from the beginning of trading during the day to the end. If the candlestick is black, that means that the share closed down in price during that day. So what are the advantages of candlesticks? Well each stick holds more information then you would see by looking at a typical line chart. In a typical line chart you wouldn't see opening and closing prices or ranges for that day for instance and you would not see reversals occurring in a typical line chart. So they're interesting, they contain an awful lot of data, be very careful about using them like any chart, make your investment decisions carefully. I'm Roger Groh at Groh Asset and thank you very much for spending time with me.

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