11 Minute Read

Tackle Today: Candlestick Charts

January 10, 2022

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≈ Tell Me a Story. ≈

Stock charts come in many forms and flavors. First, you have your elementary ones like line and area charts. Then there’s the slightly more intricate western bar and P&F charts. Finally, you’ll find Equivolume and Heikin Ashi on the exotic end. Each has its nuances, but perhaps none tells the story like the candlestick chart.

Over the next week, our Tackle Today messages will focus on Japanese candlestick charts. They are our chart of choice here at Tackle Trading because of the ample information you can glean from them at a glance. Let’s start with how to craft a candlestick. Picture each day as a battle between buyers and sellers. The candlestick’s job is to explain what exactly happened. Consider it a battle summary. At a glance, it tells you how the contest began, progressed, and ultimately ended.

There are four key data points to a trading session—the open, close, high, and low. The relationship between the open and close creates the body of the candle. The high and low are used to identify the wicks.

If we close higher than we opened, the bar is colored green or white to signal it was an up day. If we close lower than we opened, the bar is colored red to signal a down day.

If we ended the day off the highs, a wick would be drawn from the top of the candle body to identify the high. Similarly, when we finish off the lows, a wick will be plotted from the bottom of the candle body to determine the low.

There are dozens of unique formations you can learn. In the days to come, we’ll explore the more popular ones.

🛑 Upcoming Webinar – Technical Analysis 101: The Basics of Candlesticks Analysis with Coach Tyler Craig | January 17th, 2022 at 8:30 PM EST on YouTube

You don’t want to miss this webinar. Set an alert, clear your calendar, and get ready for an insightful discussion on technical analysis that will help you take your chart reading and your trading skills to the next level.

In this webinar, you are going to learn:

✅ Why Candlesticks are our preferred form of charting.
✅ How to craft a candlestick
✅ The basics of bullish reversal candles
✅ The basics of bearish reversal candles
✅ Understanding candlesticks in the context of the trend

Click on the button below to go to YouTube and set a reminder so you won’t miss it when Coach Tyler goes LIVE.

Video of the Day: What Are Candlestick Charts

Candlesticks are a popular form of charting in trading. The method was originally developed in Japan. The popularity regarding candlestick charts comes from the simple visual relationships they can help a trader understand.

Chart of the Day: S&P 500 Breaks the 50-day

Rising rates rattled the market on Monday, causing the S&P 500 to crack the 50-day moving average. Pull out your correction playbook because the short-term in many areas is now down.

Today’s line up

Traders Lounge 11 AM EST

Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.

Halftime Report 12:30 PM EST

The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day, and fun in a way that only Matt and Tim can deliver.

Tackle 25 MasterMind Group 8:30 PM EST

Tackle 25 system owners are invited to join and learn how to better use the Covered Call System using the Tackle 25 stock list with an expert coach.

Weekend Reports

Watch the Stock, Options, Commodity, and Forex Reports to help you prepare for the week.

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