Now, let's understand, what does a candidate tell you, a candle speaks with us, so if you can understand
what exactly it is trying to tell us, then we can largely benefit from it.
So let's now understand what KANDELL tells you, what information it gives you.
So a candle, first of all, gives you these four data points or HLC open high, low and close.
This is what it tells you.
First.
Second, it tells you who won the battle, who won the battle on that particular day.
When we talk about blue candle green one, we can say that we won the battle.
Isn't it because market closed higher than it's open?
We can say that was won, whereas in Bear Candle we can say that Bears won the battle on that particular
day.
So the second piece of information that I can tell you is who won the battle?
Third information is how much bulls and bears were in control, so this you can tell by the length of
its body.
So let's say this, the green candle.
So then it is a green candle.
We can say that once won the battle, but how much they were in control.
Let's see another green candle, Wolf Candle, which is slightly longer than previous one, so we can
say that in second case, bulls were in more control of the market than in first case.
We take another example where this is the body, very small body and very small range.
So the third type of candle wherein we can say that bulls won the battle, but they were not much in
control of the market.
So using the candle, we can tell who was in control and how much that is very important.
Second last thing that is, it tells you, is the range of the body, what was the range?
So you just deduct high from the low, you get the range of the body.
And when we find out the range of the body, we can find out the volatility that is associated with
the market.
So it again tells you how volatile is the market on that particular day.
And last but not the least, a candle can tell you what can happen in the future.
So this is very important.
If we can find out what can happen with that particular stock in future, we can take benefit of that.
If we know that it is going to go up in future, we can take our position on that particular direction
and benefit from it.
So that is what a candle tells you.
So a candle tells you very valuable information about that stock on that particular day.
And it is our art to understand it properly, comprehend it properly and take benefit of it.
I hope you have understood this.
Let's now see the next concept.