fbpx
STOCKONOMY UNIVERSITY

Understanding Candlesticks & OHLC Bars

Candles and OHLC bars are how 99% of traders display there charts. As a beginner, I felt OHLC bars were easier to see and understand. Today, I use candlesticks because I believe it tells the story more accurately.

Bullish Engulfing

  • Price engulfs the high and low of previous day range
  • Price finds buying volume after price drops and breaks previous day high
  • Sustained move upward or trend change

Bullish Hammer

  • Support is sharply rejected
  • Price moves lower, but finds buying volume
  • Bulls took control toward the close
  • The following day, strong bullish candle was formed showing momentum continuation