Candlesticks Definition - Glossary

Candlesticks are graphical representations of price movements in trading, showing open, close, high, and low prices over a period.

Candlesticks are tools used in financial trading to visualize price action over time. Each candlestick represents a specific time frame and includes four key data points the opening price, closing price, highest price, and lowest price. The body of the candlestick shows the range between the opening and closing prices, while the wicks (or shadows) indicate the highs and lows. Traders use candlestick patterns to identify potential market trends and make informed decisions. They provide a clear, visual way to analyze market sentiment and price dynamics.