Candlestick was formed by using open, high, low and close.
- If the closing price is above the opening price, then candlestick transparent (or usually white) is formed.
- If the closing price is below the opening price, then the black candlestick is formed.
- The part that is white or black candlestick is called "real body" or just "body".
- Thin lines that appear above and below the body indicate the range high / low and is also called shadow or tail.
- The top of the tail indicates the highest price or "high".
- The bottom of the tail called the "low" or the lowest price.
Body length indicates that the strong buying or selling. The longer the body, the more intense the pressure to buy or sell. Body is short indicating activity buying or selling a bit.
Candlestick with over a longer tail, under a longer tail and smaller body called spinning tops. This pattern indicates the existence of inconsistencies between the buyer and seller.
Inverted hammer indicates there is a possibility for the occurrence of reversal when prices are falling.
Hanging man is a bearish reversal pattern that can also be used as a sign of the top or resistance level is the strongest.
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