Candlestick charts are simply bar charts designed to describe the movement of the price related to security finance and currency over a period of time. There are two distinct entities that separate the candlestick chart from other charts and that is the combining of the line chart and the bar chart at the same time to offer the future investor a clearer picture of how a particular stock is operating on the open market.
The candlestick charts do have a very interesting history as they developed during the Eighteenth Century by a then Japanese trader. Given the period of time this was a very ingenious and creative way to measure the worth of anything measurable. These specialized charts were very adaptable because they were simple and easily readable even for an individual new to the criteria.
These charts expressed a fairly accurate portrayal of how the stock they wanted to monitor was performing over any period of time. The investors at the time were full participants in the luxury of having a much better understanding before deciding on which stocks they had an interest in investing. This was a very big initiative for the investor and the stress of worry and skepticism was at a new reduction.
In the modern day stock market the energetic stockbrokers still use this method of measurement today to distinguish a bear market from a bull market. When the long lower shadow appears to play a more dominant role in the stock market it is a bull market. When the long upper shadow appears to play a more dominant role in the stock market it is a bear market. It really is amazing how something so old can be so accurate a majority of the time.
In the modern era of today these particular charts appear a little different simply because the charts have more color added than the original charts. However, this does not change the fact that after all these years it still is a very valuable tool used by the traders of stock today. The reliability of these candlestick charts becomes very clear by tracking the length of the lines from one side of the chart to the other side.
Today these candlestick charts are displaying in a digital format. This is to better serve all the stock traders during the course of the trading day. They are in format on larger screens throughout the stock exchange and strategically in place to be in view of all the stockbrokers who utilize them to monitor the stock movement.