|  OCT 1991

SIDEBAR: DRAWING CANDLESTICKS

DRAWING CANDLESTICKS If drawn by hand, Japanese candlestick charting is time consuming but simple. First, collect the high, low, open and close price for the period under consideration (five minutes, hourly, daily, weekly or whatever you may choose). Second, mark the open and the close on a price chart and join them by a small rectangle to form the body of the candle (the small end on the time scale and the long on the price scale, representing the difference between the open and close prices). Third, paint the rectangle black when the open is higher than the close and leave it white when the close is higher than the open. Finally, mark the high and low price for the period and join them to the rectangle with small black lines.

by Technical Analysis, Inc.