Security Analysis And Portfolio Management

ALVA’S INSTITUTE OF ENGINEERING AND TECHNOLOGY

Shobhavana Campus, Mijar.

SUBJECT : Security Analysis and portfolio Management

TOPIC: Japanese Candlestick Charts

SUBMITTED BY: Ms. Ashwini Kumari

4AL09MBA07

MBA-3rd Sem

AIET, Mijar

SUBMITTED TO: Mr. Dharmanand M.

Dept. Of MBA

AIET, Mijar.

SUBMISSION DATE: 29-10-2010

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JAPANESE CANDLESTICK CHARTS

The Japanese Candlestick Chart shows the higher price, the opening price and closing price
of shares on a day to day basis. The highest price and the lowest price of a day are joined by a
vertical bar. The opening price and closing price of the day which would fall between the
highest and the lowest prices would be represented by a rectangle so that the price bar chart
looks like a candlestick. Thus, each day’s activity is represented by a candlestick.

There are mainly three types of candlesticks, that is, the white, the black and the doji or
neutral candlestick. A white candlestick is used to represent a situation where the closing
price of the day is higher than the opening price. A black candlestick is used when the closing
price of the day is lower than the opening price. Thus, a white candlestick indicates a bullish
trend while a black candlestick indicates a bearish trend. A doji candlestick is the one where
the opening price and the closing price of the day are the same.

Japanese candlestick charts shown as follows:

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Bibliography :

Kevin . S. “Portfolio Management” Second Edition, “Published by Asoke K. Ghosh, PHI

Learning Private Limited, M-97, NewDelhi-110006” Page No. 103-104.