Real Body
What Is the Real Body?
The real body is the wide part of a candle on a candlestick chart. The real body covers the area between the opening price and the closing price for a while. On the off chance that the open is below the close the candle is many times colored green or white. In the event that the close is below the open, for the time span, the candle is typically colored red or black.
Everything the Real Body Says to You
The real body, in candlestick charting, is the wide part of a candle that addresses the reach between the opening and the closing prices throughout a specific time span.
Candlestick charts utilize a variety coded system to mean course. At the point when the real body of a candle is black or concealed red, it means the close was lower than the open. In the event that the real body is vacant (white) or colored green, it means the close was higher than the open. This variety based system makes it simple so that investors might see whether prices went up or down during a specific time span.
Each candle addresses a specific period of time, like one day. A daily candlestick chart means each candle shows the high and low, through shadows, and the real body shows the open and close prices. The real body is thick, while the shadows are thin.
The beginning of candlestick charting returns hundreds of years. It follows back to Japan, where dealers and rice traders would utilize a comparative system to monitor and track commodity prices. That Japanese system was in the end replicated and modified by traders all through the world, as it has become exceptionally famous.
Candlestick Patterns
The real body of a candlestick, along with the shadows, can take on numerous varieties. A few candles have a small real body and long shadows, another candle might have a long real body and no shadows.
Candlesticks with a certain appearance, and in a certain order, make candlestick patterns. Candlestick patterns are utilized by certain traders to imply trend continuations or reversals, or to signal a delay or uncertainty in the price bearing.
Illustration of a Real Body on a Candlestick Chart
The following is a [EUR/USD](/eur-usd-euro-us-dollar-money pair) daily candlestick chart. The candles each address one day, with the real body showing where the day opened and closed, and shadows showing the high price and low price for the afternoon. A down and up candle is set apart with the open and close.
The Difference Between a Real Body and an Engulfing Candle
A engulfing candle is a candlestick pattern where the real collection of one candle is immersed by, or fits within, the real group of inverse tones that follow. For instance, a green candle could be immersed by a red candle that follows. The pattern shows a strong shift in short-term sentiment.
Limitations of Candlesticks and Real Bodies
Real bodies show the open and closing price of a security, that is all there is to it. Some other data in view of the real bodies is subject to interpretation and might be subjective. A series of red candles might be bearish to one trader, yet the drop in price might introduce a buying opportunity to another trader.
Candlesticks are best utilized related to different forms of analysis, for example, technical price patterns, technical indicators, trend analysis, price action, and perhaps fundamentals.
Highlights
- A real body is the thick part of a candle, showing the difference between the open and closing price.
- On the off chance that the candle is black or red, the closing price is below the open. In the event that the candle is green or white, the close price is over the day's open.
- Each candle addresses a period of time, like one day, multi week, or one moment.
- Candlesticks additionally have shadows; thin lines stretching out above and below the real body that show the high price and low price for the period.
