A candlestick is a type of price chart used in financial markets to show the movement of asset prices over a specific period of time. It is widely used in technical analysis for trading stocks, forex, cryptocurrencies and other assets.
Each candlestick represents four main parts of the price data:
| Candlestick Parts | Description |
| Open | Price at the beginning of the period. |
| Close | The price at the end of the period. |
| High | Highest price in a long time. |
| Low | Lowest price in a short period of time. |
Structure of a Candlesticks
The Body:
The rectangular part of the candlestick shows the range between the opening and closing prices.
| Green / White: The price closed higher than it opened (bullish) |
| Red / Black Body: The price closed lower than it opened (bearish). |
Wicks (or shadows)
Thin lines extending above and below the body indicate high and low values.
| Upper Wick: Represents the higher part. |
| Lower Wick: Represents the lower. |
The type of candles:
Different candle patterns give an insight into the market sentiment. Examples include:
| Type | Description | Image |
| Doji | The open and close prices are very close, indicating market uncertainty. |  |
| Hammer | A small body with a long lower vent at the top, indicating a possible inversion at the top. |  |
| Engulfing | Large candle “hides” the previous one completely, signaling a possible trend change. |  |
This are the some types of candle in trading.
