How To Read Stock Candles

When a stock is in an uptrend more hollow candles are present.

How to read stock candles. 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. This displays the lowest price traded during the period timeframe of the candle. 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. On most charts if you can draw a multi month trend line the candle that closes below the trend line is usually a big filled candle. When a break in a trend line occurs you may experience heavy selling.

An example of a trend line break on consolidated edison ed is shown here. If the upper shadow on a down candle is.