NISM Certifications · NISM-Series-XV: Research Analyst · Technical Analysis
In a Japanese candlestick chart, a candle whose closing price is above its opening price is conventionally drawn as which of the following?
A candle that closes above its opening price is a bullish or rising candle, with the body drawn between the open and the close. It shows buyers prevailed during the period. A doji is different, because it has nearly equal open and close.
- AA bullish (rising) candle, with the body between open and closeCorrect
- BA bearish candle with a hollow body only when volume is high
- CA doji, because open and close differ
- DA candle with no upper or lower shadow by definition
Explanation
A candle closing above its open shows buying dominance in the period and is called a bullish or rising candle. The body spans open to close. A doji has open and close nearly equal, so it is not the case here.
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