What are candlestick charts?

Candlestick charts are a visual aid for decision making in stock, foreign exchange, commodity, and option trading. Looking at a candlestick, one can identify an asset’s opening and closing prices, highs and lows, and overall range for a specific time frame. Candlestick charts serve as a cornerstone of technical analysis.

What is a candlestick in trading?

What Is A Candlestick? A candlestick is a type of price chart used in technical analysis that displays the high, low, open, and closing prices of a security for a specific period. It originated from Japanese rice merchants and traders to track market prices and daily momentum hundreds of years before becoming popularized in the United States.

What does the'real body' on a candlestick mean?

The wide part of the candlestick is called the "real body" and tells investors whether the closing price was higher or lower than the opening price (black/red if the stock closed lower, white/green if the stock closed higher). Candlestick charts display the high, low, open, and closing prices of a security for a specific period.

What is the difference between a hollow and a standard candlestick?

A standard candlestick combines a stock’s high, low, open and close prices into a single image composed of a rectangle with two extra lines, or wicks. With solid candle analysis, the candle is solid regardless of the move. However, with hollow candles, more information can be extracted quicker as there more setups to watch.