Candlestick

One bar on a price chart that shows where price opened, closed, and how high and low it went in a set time.

A candlestick is a single bar on a price chart. Each one covers a fixed slice of time, such as one hour or one day, and shows four prices: where the price started (the open), where it ended (the close), the highest point and the lowest point.

The thick part is called the body. It runs from the open to the close. The thin lines above and below are called wicks. They show how far price stretched before it was pushed back. A body is usually colored one way when price closed higher than it opened and another way when it closed lower.

Reading many candles in a row tells you who was in control: buyers pushing price up, or sellers pushing it down.

Example: on a daily chart, a share opens at $50, rises to $54, dips to $49 and closes at $53. That day draws one candle with a body from $50 to $53 and wicks reaching $54 and $49.

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Educational definition. Not financial advice; no real-money execution.