Читать книгу Candlestick Charting For Dummies - Russell Rhoads - Страница 30

Knowing a security’s closing price relative to its opening price during a certain period is vital information. Candlestick charts allow you to quickly identify the days when a closing price is above an opening price, and vice versa.

I like to think of the daily price action as a battle between bears and bulls. Bears win when the price of a security closes lower than its open, and bulls win on the days when the close settles higher than the open.

Figure 2-2 is a great example of bearish and bullish days on a candlestick chart. Although the two candlesticks are the same size and shape, you can tell the difference between a bear and a bull:

 The bear: The black filled-in candlestick indicates a bearish performance by the security because the close is much lower than the opening price.

 The bull: The hollow white candlestick indicates a bullish performance, meaning that the opening is lower than the close.

Figure 1-1 in Chapter 1 covers hollow candlesticks that show a higher close than open and a filled-in candlestick that shows a lower close than open.

FIGURE 2-2: Bearish and bullish days on a candlestick.

Understanding the ways that prices are trending is very useful information in making buy-or-sell decisions. The old saying “The trend is your friend” is a reminder that you always want to be on the dominant side of price action. By recognizing whether the bulls or bears (see the nearby sidebar) are the dominant group, you can be conscious of the trend and better prepared to stay on the right side of the market.