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Candlestick

A candlestick is a traditional way of representing prices on a graph.  Each candlestick is represents all of the price action during a specified time period.  Each candlestick contains exactly four pieces of data, the prices of the first print, the last print, the highest print, and the lowest print inside of the candle.

Candlesticks were invented many years ago by Japanese rice trades to track the rice market.  They are now popular for tracking stock prices because they are so easy to compute and use.  We generally prefer statistical analysis to candlesticks because candlesticks leave out too much data.  Candlesticks are particularly misleading on intra-day charts.

The biggest problem with candlesticks is that a single, small print can change the shape of the candle.  A single print which is much higher or lower than the rest of the prints will make the biggest change to the candle.  The closing price of a candle comes from the last print before the candle ends.  For intra-day charts, these times are completely arbitrary; you almost randomly choose one print to highlight.  What if a large print happens a second before a small print at a different price?  Which one becomes the closing print of the candle?  The opening price of the candle is even more misleading.  When you make a 15-minute candlestick chart, you choose two adjacent prints to represent the entire 15 minute period.  Why plot two adjacent prints?  You would have a better representation of the data if you selected one print every 7 1/2 minutes.

Our statistical analysis avoids these problems altogether.  No one print stands out in our analysis.  A small print which disagrees with the rest of the data is discarded.  We also offer a limited number of traditional candlestick patterns.

Alert Types

We offer the following alert types which are related to this topic.  Click on the icon for a detailed description of the alert, or click on the "more" link for additional examples of each type of alert.

Type Recent Examples More Examples
Time (NY) Symbol Message
5 minute highMay 16th, 6:59:55 PMTOLNew 5 minute high.more
5 minute lowMay 16th, 6:59:07 PMWFCNew 5 minute low.more
10 minute highMay 16th, 6:59:55 PMTOLNew 10 minute high.more
10 minute lowMay 16th, 6:59:07 PMWFCNew 10 minute low.more
15 minute highMay 16th, 6:59:55 PMTOLNew 15 minute high.more
15 minute lowMay 16th, 6:59:07 PMWFCNew 15 minute low.more
30 minute highMay 16th, 6:59:09 PMGVANew 30 minute high.more
30 minute lowMay 16th, 6:59:07 PMWFCNew 30 minute low.more
60 minute highMay 16th, 6:59:09 PMGVANew 60 minute high.more
60 minute lowMay 16th, 6:58:21 PMFEEDNew 60 minute low.more
5 minute DojiMay 16th, 4:00:00 PMEGO5 minute Dojimore
10 minute DojiMay 16th, 4:00:00 PMCIG10 minute Dojimore
15 minute DojiMay 16th, 4:00:00 PMWTR15 minute Dojimore
30 minute DojiMay 16th, 4:00:00 PMGLG30 minute Dojimore
5 minute hammerMay 16th, 4:00:00 PMSSPHammermore
10 minute hammerMay 16th, 4:00:00 PMSNVHammermore
15 minute hammerMay 16th, 4:00:00 PMFDSHammermore
30 minute hammerMay 16th, 4:00:00 PMBNDHammermore
5 minute hanging manMay 16th, 4:00:00 PMGFAHanging Manmore
10 minute hanging manMay 16th, 4:00:00 PMNFXHanging Manmore
15 minute hanging manMay 16th, 4:00:00 PMIHGHanging Manmore
30 minute hanging manMay 16th, 4:00:00 PMIAFHanging Manmore
5 minute bullish engulfingMay 16th, 4:00:00 PMVEUBullish Engulfingmore
10 minute bullish engulfingMay 16th, 4:00:00 PMHTMBullish Engulfingmore
15 minute bullish engulfingMay 16th, 4:00:00 PMHMABullish Engulfingmore
30 minute bullish engulfingMay 16th, 4:00:00 PMGELBullish Engulfingmore
5 minute bearish engulfingMay 16th, 4:00:00 PMSNGBearish Engulfingmore
10 minute bearish engulfingMay 16th, 4:00:00 PMGTEBearish Engulfingmore
15 minute bearish engulfingMay 16th, 4:00:00 PMBMABearish Engulfingmore
30 minute bearish engulfingMay 16th, 4:00:00 PMAREBearish Engulfingmore
5 minute piercing patternMay 16th, 4:00:00 PMVLOPiercing Patternmore
10 minute piercing patternMay 16th, 4:00:00 PMBIKPiercing Patternmore
15 minute piercing patternMay 16th, 4:00:00 PMBBTPiercing Patternmore
30 minute piercing patternMay 16th, 4:00:00 PM$DJUPiercing Patternmore
5 minute dark cloud coverMay 16th, 4:00:00 PMSFGDark Cloud Covermore
10 minute dark cloud coverMay 16th, 4:00:00 PMMIRDark Cloud Covermore
15 minute dark cloud coverMay 16th, 4:00:00 PMGRBDark Cloud Covermore
30 minute dark cloud coverMay 16th, 3:30:00 PMSAMDark Cloud Covermore
5 minute bottoming tailMay 16th, 4:00:00 PM$DFI.XBottoming Tailmore
10 minute bottoming tailMay 16th, 4:00:00 PMKIMBottoming Tailmore
15 minute bottoming tailMay 16th, 4:00:00 PMRCLBottoming Tailmore
30 minute bottoming tailMay 16th, 4:00:00 PMCRHBottoming Tailmore
5 minute topping tailMay 16th, 4:00:00 PMBIGTopping Tailmore
10 minute topping tailMay 16th, 4:00:00 PMAINTopping Tailmore
15 minute topping tailMay 16th, 4:00:00 PMCPNTopping Tailmore
30 minute topping tailMay 16th, 4:00:00 PMEFXTopping Tailmore
5 minute narrow range buy barMay 16th, 4:00:00 PMCKNNNarrow Range Buy Barmore
10 minute narrow range buy barMay 16th, 4:00:00 PMGBNarrow Range Buy Barmore
15 minute narrow range buy barMay 16th, 4:00:00 PMWMKNarrow Range Buy Barmore
30 minute narrow range buy barMay 16th, 4:00:00 PMENPNarrow Range Buy Barmore
5 minute narrow range sell barMay 16th, 4:00:00 PMRESNarrow Range Sell Barmore
10 minute narrow range sell barMay 16th, 4:00:00 PMIRBTNarrow Range Sell Barmore
15 minute narrow range sell barMay 16th, 4:00:00 PMCORNarrow Range Sell Barmore
30 minute narrow range sell barMay 16th, 4:00:00 PMMMABNarrow Range Sell Barmore

See Also

Body, Print, Statistical Analysis, Wick

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