A candlestick chart depicts each specific period’s opening, closing, rising, and falling price points. A candlestick chart can form a pattern interpreted as a buy or sell indicator if the ‘candlesticks’ appear in a particular form.
Often if the candlestick pattern is being used as an indicator, it will be considered in conjunction with other indicators.
Examples of Usage
- “Ripple produces a rare bullish candlestick pattern, which could lead to a $1 price”.
- “Prices gapped lower Friday, as shown in this daily candlestick chart of BTC. Since early September, the slope of the 200-day moving average line has been negative and continues to point lower.”
You can find more information about candlesticks in this article.