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Glossary Term

Candlestick Chart

The standard price chart in trading: each candle shows open, high, low and close for a period at a glance.

A candlestick chart compresses four data points per time period into one shape: where price opened, closed, and the highest and lowest points between. The thick body spans open-to-close; thin wicks mark the extremes. A green (or hollow) candle closed higher than it opened; red closed lower.

Candles reveal the battle inside a period — a long lower wick means sellers pushed price down but buyers absorbed it. Whole libraries exist on candlestick patterns; the honest evidence is that individual patterns are weak signals in isolation, but reading candles fluently is basic literacy for interpreting any market discussion.

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