welcome to looking at the markets with David Modell we're gonna try to or I'm
gonna try to explain to you Candlestick stock charts and I'm gonna try to do it
simply and I'll try to do it in a few minutes okay so right now we're looking
at a website called the stock market watch calm and just to keep it simple
I'm going to show you the daily candlestick chart for Apple stock okay
so these are candlesticks and each candlestick represents one day of price
action where the price went for Apple stock and you don't have to use daily
Candlestick charts like this there are weekly candlestick charts where each
candlestick represents an entire week of price action there are monthly
candlestick charts where each candlestick represents a whole month of
where the price went and for day traders there are one-minute candlestick charts
where each candlestick only represents a minute of price action there are five
minute charts there are 30 minute charts hourly charts where each candlestick
represents an hour but to keep it simple we'll just look at the daily chart okay
so each candlestick represents four things it shows you the open
the high the low and the close of that particular trading day oh h LC open high
low and close okay so let's look at the two parts you've got the body of the
candlestick which is the the rectangle that's filled in okay and then you've
got the wick okay and those are the lines that are protruded protruding from
the top and bottom some of them some of these candlesticks only have a top wick
some of these candlesticks only have a bottom wick and some of them have both
the top and a bottom wick but they all have a body some of them have a very
skinny body very small very slender but they all have a body all right now for
green candlesticks if it's green that means that the bottom
of the body is where Apple stock opened on that day on that particular day okay
so at 9:30 a.m. Eastern Time that's the open that's the opening bell
of the trading day that's where it opened okay that's the opening price
that's the price and then the if it's green it's the bottom of the candlestick
is the open for that day opening price and if it's green then the top of the
body represents the closing price okay that's you know the four o'clock p.m.
Eastern Time they ring the closing bell to end the trading day and the top of
the body of the green candlestick is where it closed for that day so you got
the open and the close at the bottom and top of the green candle now if it's a
red candlestick it's the opposite because it went down that day so if it's
red then the top of the body shows the opening price and the bottom of the body
represents the closing price and so it went it opened here and it closed here
on a green candlestick it opened here and closed here it's the opposite of the
red now what about the wicks well we talked about the open and the close
which are represented by the body of the candlestick the wicks represent the high
of the day how high the price action went that day and the low of the day how
low it went during the day so for example on this one this is a red
day so we know it opened here at the top of the body closed here but at some
point during the trading day during that day the price of Apple went up it went
all the way up to here and then and then it came down and also during the trading
day it went down here to the bottom of the bottom wake but then came back up
somewhat so we know four pieces of information just from this little
candlestick here since it's red we know that it opened here at the bottom of the
body and then at some point it went down a little bit it went down to here and
also during the trading day at some point it went as far as far up as here
the high of the day top of the top wick and then it closed down here it opened
here it went this far down during the day this far up during the day and then
it closed right here at the bottom of the body let's look at a green one we
know since it's green then it opened at the bottom of the body and it moved
around it moved around a bit at some point during the trading day it went
this far down to the low of the day also during the trading day it went this far
up to the high of the day and then it closed here since it's green it closed
at the top of the body all right now you'll notice that some of these
candlesticks only have a top wick so for example this one it it opened
here since it's green at the bottom of the body and it never during that day
really went below here it never went any further down than here it opened here
and then it went up during the day and it went up this far to the top of the
top wick and then came back down and closed here let's take a look at a
candlestick with only a bottom wick like this one I know since it's red it opened
here at the top of the body and it never really went above that point because
there's no top wick all right and then it went down and it went down all the
way down here at some point at the bottom of the bottom wick that's the low
of the day but then it came back up and then closed here now take a look at this
one this is an interesting one you can see how skinny or slender the body is
that means that it opened and closed at nearly the same exact price it's green
so it opened a tiny bit higher than I'm sorry it closed tiny a tiny bit higher
than it opened I know that because it's green but still
it and it had a lot of price movement at some point during the trading day it
went down here and then came up and then during the trading day some time it went
all the way up here but then came back down and closed here it opened here and
closed not much higher a little bit higher because it's still green but so
those are it was almost a flat day really okay so those are Candlestick
charts and really they're great because they tell you for Pete for it vital
pieces of information the open the high the low and the close Oh a Chelsea so
what I want you to do is start to start reading Candlestick charts on your own
and try to try to gather those four pieces of information from every
candlestick okay I hope this was helpful to you I hope I explained it quickly but
but pretty thoroughly I think I think that's really a great start but I want
you to you know I want you to keep learning and I want you to keep working
on it on your own and if you'd like more information on how to read charts and
how to interpret them or if you just want to put together a trading plan you
can contact me by email at any time my email address is David Modell at
gmail.com if you like this video if you found it helpful please give it a thumbs
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my financial educational videos thank you so much for watching I appreciate it
and I'll talk to you again soon