What is a candlestick chart?

by vincenzo.murazik , in category: Stocks and Equities , 9 months ago

What is a candlestick chart?

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1 answer

by paolo.leuschke , 9 months ago


A candlestick chart is a type of financial chart used to represent the price movement of an asset, such as a stock, currency, or commodity, over a specific time period. It consists of a series of individual "candlesticks" that visually illustrate the opening, closing, high, and low prices for each time period.

Each candlestick has a rectangular body and thin lines, called "wicks" or "shadows," extending above and below the body. The rectangular body represents the range between the opening and closing prices, with a colored or filled body indicating a price decrease (bearish) or price increase (bullish). The wicks represent the high and low prices during the time period.

Candlestick charts are often used by traders and analysts to identify patterns and trends in price movements, as well as to make buy or sell decisions based on the signals generated by specific candlestick patterns, such as doji, hammer, shooting star, etc.