Trading

Candlestick

A chart symbol showing an asset's open, close, high, and low for a given time period.

A candlestick packs four prices into one shape: the open, close, high, and low for a period. The thick body spans open to close, colored one way if price rose and another if it fell. Thin wicks above and below mark the extremes. A daily chart shows one candle per day; a 1-minute chart, one per minute.

The format, borrowed from 18th-century Japanese rice traders, makes momentum visible at a glance. Long bodies show conviction; long wicks show rejection, a price probed and pushed back. Patterns like the doji or the hammer get a lot of attention, though on their own they predict less than chart-readers like to claim.

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