CONSTRUCTION OF A JAPANESE CANDLESTICK. It is important to gain a good understanding about how a single Japanese candlestick is constructed. Each Candlestick displays a visual representation that informs you how price is behaving during a selected time period. As such, if you can interpret them with confidence then you can deduce many features of the current performance of market price. Each candlestick comprises four main components. They are its high price, closing price, low price and opening price. The range between the closing and opening prices is termed the ‘Real Body’ of a candlestick. When the color of the ‘Real Body’ is white, then this represents trading situations whereby price closed higher than its opening value. This is considered a bullish result. The following diagram depicts a bullish Candlestick. Bull Candle In addition, the distance between the closing price and the high price is called the ‘wick’, whilst the distance b
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