What is a candlestick in trading?

A candlestick is a type of price chart used in technical analysis. It displays the high, low, open, and closing prices of a security for a specific period. The candlestick originated from Japanese rice merchants and traders hundreds of years before becoming popularized in the United States. It was used to track market prices and daily momentum.

What is a stock candlestick chart?

Candlestick stock charts depict price action in a visually appealing way by tracking the movements of securities better than old-school bar charts or line chart. And the price action is easier to interpret at a glance, which is why you need to get a grasp of stock candlestick meaning. The name comes from their resemblance to actual candles.

What is a candlestick chart & how does it work?

It tells investors whether the closing price is higher or lower than the opening price. It appears as black/red if the stock closed lower or white/green if the stock closed higher. Candlestick charts display the high, low, open, and closing prices of a security for a specific period. The shape varies based on the relationship between these prices.