Читать книгу Candlestick Charting For Dummies - Russell Rhoads - Страница 29

It sounds pretty simplistic, but one noteworthy advantage candlesticks have over other charts is readability. For many people who strain to read fine print, and also for the younger traders who don’t want to deal with the headaches that can come from staring at bar charts all morning, candlesticks are an attractive option. Consider Figure 2-1, which compares a bar and a candlestick.

Figure 2-1 gives you a basic idea why candlesticks are easier to read, but it doesn’t provide a full picture of why they’re also much better at helping traders visually interpret price action (how the stock or market traded during the day relative to the opening price), which is an essential skill for successful trading. Figure 2-1 shows how a single day would be displayed on a bar chart and a candlestick chart.

FIGURE 2-1: A bar versus a candlestick.

Notice the dramatic difference between the bar chart and the candlestick chart. By comparing them, you can clearly interpret what occurred from day to day, including the openings, closings, and how they change from day to day. The candlestick chart is superior to a bar chart for interpreting price action from day to day. Don’t worry; I cover how to read candlestick charts extensively in several other chapters. But even in this simplistic example, you can see that knowing where a stock closed relative to its open on a given day is a powerful piece of information that you can glean quickly from a candlestick chart.