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


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | 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