Candlestick chart

From MarketsWiki
Jump to: navigation, search
RCG Division of Marex Spectron-337x80.jpg


A candlestick chart [1] provides a picture of the relationship between opening and closing prices and their relative strengths or weaknesses over extended periods of time. The body of the candle represents the difference between opening and closing prices. Shadows, which look like wicks, represent price action that occurs above or below the body. Generally speaking, the longer the body is, the more intense the buying or selling pressure. Conversely, short candlesticks indicate little price movement and represent consolidation. [2]

References

  1. Technical Analysis Terms. Lind-Waldock.
  2. Introduction to Candlesticks. StockCharts.com.