Candlestick

Candlestick is a type of price chart used to display the high, low, open and close prices of a stock for a given period of time. It was created by Japanese merchants and rice traders to track market prices and daily momentum for hundreds of years before becoming popular in the United States.

The broad part of the candlestick is called the "real body" and tells investors whether the closing price was higher or lower than the opening price (red if the stock closed lower, green if the stock closed higher).

This representation reflects the impact of investor sentiment on stock prices and is used by technical analysts.

Two popular patterns are the Evening Star, which indicates a downward trend, and the Morning Start, which indicates an upward trend. There are also useful representations for trading, including the Heikin Ashi.

candlestick