Candlestick Chart
A price chart showing open, high, low and close as candle bodies and wicks.
Quick answer
A candlestick chart shows open, high, low and close as a body with wicks.
Definition
A candlestick chart shows each period as a body and two wicks. The body spans the open to the close, and the wicks show the high and low. Traders read the shape and colour of candles to gauge momentum and spot reversal patterns like doji and engulfing.
How It Works
- The body spans open to close
- Wicks mark the high and low of the period
- Candle shapes signal momentum and reversals
Trading Tips
1
Learn a handful of reversal patterns, not all of them
2
Read candles in context of support and resistance
3
Use them with the timeframe that matches your style
Related Terms
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