What are Japanese candle sticks?

What are Japanese candle sticks?

For  investment decision it is very important  to understand the Japanese candle sticks.

HOW TO READ A CANDLE STICK

The candle stick is formed out of the price movement for any given period.
During the period there are three possibilities.

First one is the price can move up.
second  one is that the price has gone down.  Third is neutral.  I.e. neither up not down.

If the candle is green in colour it means the price had gone up but if it's red in colour means the price has done down in the given period.

green candle is called a bullish candle and the red one is called bearish candle.
The third category candle is neither bullish nor bearish.  Its neutral.
So its body is small and it could be either  red or green in colour .

There are four prices for any candle.
Open, low,  high, close.

Open is the price  which is at the beginning of that period.  Low means the lowest point in that time period.  High means the highest level the price had reached in that period and close means  the price at which that period ended.

The thin lines above and below the main thick body of the candle are  called Wicks.

Open and close price are important but at the same time the wicks which show  the highs and lows should  not be ignored.

Long Upper wick would signify that the price actually went to that level but the bear force pulled the price down.

Long lower wick would signify that the price had actually dropped to that level but the bull force was so strong that they pulled the price up. 

These long or high wick candles  as they are called convey a lot  to the stock analyst especially if they are at the top or bottom of a trend.