CandlestickCharts

Candlestick charts are a type of financial chart used in technical analysis to describe price movements of a security, derivative, or currency. Each "candlestick" typically shows four price points: the open, close, high, and low for a given period. The main body of the candlestick, called the real body, represents the range between the open and close prices. If the close is higher than the open, the real body is usually colored green or white, indicating an uptrend for that period. If the close is lower than the open, the real body is often red or black, signifying a downtrend.

Extending from the real body are thin lines called "wicks" or "shadows." The upper wick shows the high price reached during the period, and the lower wick indicates the low price. The length of the real body and the wicks provide visual clues about price volatility and market sentiment. Short bodies with long wicks can suggest indecision in the market. Candlestick patterns, such as doji, hammer, and engulfing patterns, are formed by combinations of these candlesticks and are interpreted by traders as potential signals for future price direction. These charts originated in Japan centuries ago and have become a widely adopted tool globally for analyzing financial markets.