Chart Patterns
Candlestick
A chart type showing open, high, low, and close prices.
Full Definition
Candlestick charts display four price points for each time period: open, high, low, and close. The 'body' shows the range between open and close. 'Wicks' or 'shadows' show the high and low. Green/white candles indicate price closed higher than open (bullish). Red/black candles indicate price closed lower than open (bearish). Candlestick patterns help predict future price movement.
Example
A daily candlestick for EUR/USD shows: Open 1.1000, High 1.1050, Low 1.0980, Close 1.1040. This creates a green candle with a body from 1.1000 to 1.1040, upper wick to 1.1050, and lower wick to 1.0980.
Related Terms
Apply Your Knowledge
Put this concept into practice with our free trading tools.