The vast majority of Traders who are constantly trading in financial markets use candlestick charts. When we look at the history of candlestick charts, candlestick charts were first used by Japanese rice traders in the 18th century. For example, "Candle Doji" means that an error has occurred. Probably because it's not common for prices to open and close in exactly the same place.
Candlestick charts tell us whether a market price action is positive or negative. It gives information about the volatility and size of the movement. For example, the area and line graph is mostly used by economists. Area and line charts are based on and show only the closing price. But candlestick charts; It also shows 4 different price parameters: opening price, closing price, highest price and lowest price level. When we look at it from this point of view, we see more clearly that the economy and financial markets are not alike.
The economy is result oriented. Economists explain results in their presentations, so area or line charts alone are sufficient for them. However, the working logic of financial markets is very different. Financial markets are built on expectations. Prospects are priced and bought by the market long before the results are announced. This balances the economic sphere.
From this point; An economist and a trader are completely different people. In financial markets built on expectations, a trader needs more parameters. Since it should provide a profit on a term basis; Traders need to have detailed information such as the analysis of the exchange between buyers and sellers, which side is more dominant. Also, they need to have detailed information such as the analysis of the exchange between buyers and sellers, which side is more dominant. Therefore, traders need candlestick charts where he can see 4 different price parameters in a single candlestick.
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