Candlestick
A chart element showing the open, high, low and close for one period.
Also called: candle · candles · ohlc
In plain language
The body spans the open and close; the wicks show the extremes reached during the period. Color indicates whether the close was above or below the open.
Wicks carry the interesting information. A long lower wick means price was pushed down and then bought back up — rejection of lower prices within that period.
A candle summarizes a battle but hides its sequence. A doji tells you the period ended where it started, not the path it took to get there.
Seen on a chart
Why it matters
Candles are the raw material of technical analysis. Every level, pattern and indicator is built from the same four numbers.
Common mistakes
- Reading single candles in isolation rather than in the context of structure.
- Trading a pattern before the candle has closed.
- Forgetting that candle shape changes entirely with the chosen timeframe.
Keep exploring
These concepts are connected. Understanding one usually makes the next one easier.
A candle that opens and closes at nearly the same price, showing indecision.
The number of shares, contracts or units traded during a period.
The period each candle on a chart represents, from one minute to one month.
A jump between one period’s close and the next period’s open with no trading in between.
A price area where buying has repeatedly been strong enough to stop a decline.