I have read somewhere that no matter what you learn in life it can always help you trade in the stock market; may be not in the exact same words but this is what the writer meant I suppose. Initial learning of candlesticks can be easier if you apply the basics of mathematics, I have tried in this post to explain the formation of candlesticks with the help of points on line graphs. So let us have a look at how candlesticks are drawn.
Suppose intra-day stock prices move from 9:00 AM to 16:00 PM and they produce an upward moving line graph, as shown below:
Chart below shows the price movement of a green candlestick formation:
Chart below shows the price movement of a red candlestick formation: