410 Chapter 9 The Mathematics of Description

Candlestick Chart A candlestick chart can be used to monitor the movements of a stock price. In Exercises 15–22, use the chart. (See Examples 5 and 6.)

Monday

Sto

ck p

rice

Tuesday Wednesday

Day

Prices of a Stock

Thursday Friday

$21.00

0

$21.50

$22.00

$22.50

$23.00

$23.50

$24.00

$24.50

$25.00

open

low

open

close

high

close

15. Describe the variables displayed in the graph.

17. What is the opening price on Monday? Tuesday?

19. On which day did the stock have the greatest gain? loss?

21. What is the highest percent return you could have earned during this week? Explain your reasoning.

The techniques used in candlestick charting originated in 17th-century Japan. Homma, a rice trader from Japan, is credited with early versions of candlestick charting, which have evolved over many years.

16. What does it mean when the candlestick is green? red?

18. What is the closing price on Wednesday? Thursday?

20. Explain why the candlestick for Wednesday does not have a lower shadow.

22. Use the Internet to fi nd other ways to display stock prices. Which type of design do you prefer?

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