What Is a White Candlestick?
- A white candlestick depicts a period where the security’s price has closed at a higher level than where it had opened.
- A candlestick will show the security’s open, high, low, and close for the user-specified time period.
- Candlestick charts are convenient for technical traders because they can easily display a full day’s price movement.
How is White Candlesticks work
White candlesticks represent a positive increase in a security’s price during the observed period of time. The body of the candlestick will typically be displayed in white on a candlestick series chart to show that the net result of the period’s price action was up. In some technical charting systems the trader may have the option to choose a specified color, such as blue or green, to represent price gains.
Candlestick charts are convenient for technical traders because they can easily display a full day’s price movement. Generally, the default colors for candlestick charts will be either white/green (UP) and red/black (DOWN), though, nowadays, charting packages offer the trader the option to customize the color schemes to their specifications.
The last possibility for charting a period’s price action is where the open and close prices are identical. This is called a doji and is graphically portrayed by a dash, signifying that the charted security’s opening price is equal to its closing price.