Imagine a stock's price opens at ₹100. After some time, the stock price drops to ₹90
But by noon, it gains momentum and rises to ₹110.
Finally, by the end of the day, the stock closes at ₹105.
.Since the market closes at ₹105, which is higher than the opening price of ₹100, this indicates a positive gain. Hence, we represent this as a green candlestick.
.Conversely, if a stock opens at ₹100 and rises to ₹105,
.But then loses momentum and drops to its lowest point of ₹90
By noon, eventually closing at ₹95, this indicates a loss. Therefore, we represent this as a red candlestick.
The rectangular section of the candlestick is called the real body, representing the session’s open and close
The thin lines above and below the real body are called shadows, indicating the high and low prices.