Investor Glossary-candlestick chartsInvestor Glossary-candlestick chartsInvestor Glossary-candlestick chartsInvestor Glossary-candlestick chartsInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Candlestick Charts

The HTML to link to this page
 

Candlestick charts plot stock price data. Originated by Japanese rice merchants, candlestick charts are used both to identify price patterns and construct trend lines. Candlestick charts use the opening, high, low, and close price data for a specific period, usually days. Pictorially, candlestick charts have a "real body," a rectangular vertical box that connects the opening and closing prices. Candlestick charts also have "shadows" or wicks," which extend from the rectangles to show the extreme highs and lows. If the closing price is above the opening, the real body is plotted in white. When the price closes below the opening, the candlestick chart is plotted in black. Candlestick charts provide essentially the same information as the more familiar bar charts. But some analysts prefer candlestick charts because they are more visually compelling, making it easier to identify various characteristics of stock price action. Like bar charts, the formations of candlestick charts are assigned various names, such as hanging man (kubitsuri) and hammer (takuri). Candlestick charts are also known as candle charts.



Rate this candlestick charts definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: irrevocable trust, minority interest, Zero Cost Collar, 144a, open position, EBITDA, 1035 exchange, annual return, FICO score, phantom income, in escrow, diluted share, deferred revenue, real GDP, deferred tax, current ratio, FTSE, 1031 exchange, dividends payable, margin rate, stock market close, limit order, VIX, retained earnings, per diem, debt service coverage, class C shares, stock split, average price per share, ex-dividend, command economy, ex-dividend date, reverse mortgage, liquidity ratio, option premium, risk management, quality assurance, 401a, required rate of return, cancelled check, implied volatility, covered put, LIBOR, Key Rate Duration, labor relations, wholly-owned subsidiary, APR, balance sheet, inflation


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use