How To Read Stock Candles

An example of a trend line break on consolidated edison ed is shown here.

How to read stock candles. When a break in a trend line occurs you may experience heavy selling. Bar charts just above and below the real body are the shadows or wicks the shadows show the high and low prices of that day s trading. Same as what you see in the high price there should be a wick shadow but in this case it s in the lower part of the candle. In order to read a candlestick chart figure out what each different part of a candlestick tells you then study the different shapes to learn about market trends. No wick shadow means that the close price is the lowest price.

When a stock is in an uptrend more hollow candles are present. This displays the lowest price traded during the period timeframe of the candle.