Glossary · Technical Analysis
Candlestick chart
A chart showing open, high, low, and close prices for each period.
A candlestick chart displays each time period — minute, hour, day — as a candle with a body and wicks. The body spans open to close; the wicks show the high and low. Color or hollow/filled style usually marks whether the period closed higher or lower than it opened.
Candlesticks pack four data points into one visual unit, which is why they are the default chart type for many traders. Reading them well starts with understanding one candle before pattern combinations.
Example
On a daily chart, a candle that opened at $100, traded as high as $105 and as low as $98, then closed at $104 shows buyers finished the day in control of that session.