What are candlestick charts?

What Are Candlestick Charts?

Candlestick charts show price action for a period (e.g. 1 hour, 1 day). Each "candle" has a body (open to close) and wicks (high and low). If close is above open, the candle is often green (or white); if close is below open, it is red (or black). The body shows the range between open and close; the wicks show the full high and low. Traders use candle patterns (e.g. doji, engulfing) for signals. Learning to read candles helps you see momentum and rejection at levels. Do not rely on single candles; use them with other analysis.