A candlestick chart shows open and close prices and highs and lows, but over a long time period, it can also show pricing trends and patterns.
What is a candlestick chart?
A candlestick chart is a type of financial chart used to represent the price movement of an asset, such as a stock, currency pair, or commodity. It is commonly used in technical analysis of financial markets. Each "candlestick" on the chart provides information about the price movement during a specific time interval, such as a day, week, or month.
A single candlestick typically consists of a rectangular "body" and two "wicks" or "shadows" extending from the top and bottom of the body. The body represents the price range between the opening and closing prices for the given time period. If the closing price is higher than the opening price, the body is usually filled or colored, often in green or white. If the closing price is lower than the opening price, the body is typically unfilled or colored, often in red or black.