Candlesticks or bar charts records
price actions per specified time period. Traders have different interpretation
on what they see on their charting software when switching from a daily to the
15 minute time blocks per candlestick or bar. A single candlestick formation
on a 15 or 30 minute chart can indicate a buy signal but switching to a much
broader time frame might produce a different interpretation.
Candlesticks can be an indirect reflection of the current sentiment of a majority
of traders or investors. Different candlestick patterns or forms are produced
depending on the actions of participants. When there are more buyers than sellers,
it is likely that a bullish candle without tails may form, this is called a
Marubozu. A marubozu indicates a strong single sentiment whether market participants
are selling or buying without hesitation within a block of time. It can either
be a full bar without shadows or "wicks" of a single short shadow
either on top or the bottom of the candle.