How to create a candlestick chart in two simple steps in Python
Candlestick chart is the most powerful tool for technical analysis of stock market trends. Candlestick chart has helped to fortune to many traders. There are many patterns like “three black crows” which are still valid.
In this tutorial, I will explain to you how to make a candlestick chart in python with minimum steps
What is a candlestick chart?
A candlestick chart tells you four essential parameters within a timeframe.
- Open Price
- High Price
- Low Price
- Close Price
How to interpret candlestick chart
The lower whisker of the candlestick chart will give the lowest price of the asset in a given time period, the upper whisker of the candlestick chart will give the highest price. The upper and lower body of the candle will give the open and close price based on color. If the color is green, the close price is more than the open price. If the color is red, the close price is less than the close price.
How to make a candlestick chart in python
Before jumping into python, please make sure you have the below libraries installed in python
Import the important library in python
Get the data from yfinance
Create data and plotly layout
Show the candlestick chart
You have done it :) The output is a nice candlestick chart