Investor Glossary-candlestickInvestor Glossary-candlestickInvestor Glossary-candlestickInvestor Glossary-candlestickInsightful 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

The HTML to link to this page
 

A candlestick is a basic unit in a candlestick chart that visually represents the movement of prices during a specified period of time -- typically one trading day. The concept of candlestick charts was developed by Japanese rice traders in the 17th century. In its basic form, a candlestick consists of a rectangular box or "body" with a thin line or "shadow" sticking out either end. The shadows of a candlestick may also be referred to as "wicks" or "tails." The shape and color of a candlestick, and the length of its shadow or shadows, are the elements that reveal price movement. A candle with an open or white body represents a day when the price of a stock or security closed higher than it opened. The bottom edge of a white candlestick is the day's opening price, and the top edge is the closing price. A candle with a filled in or black body (or in some cases, red), represents a day when a stock's price closed lower than it opened. The top of a black candlestick is the day's open and the bottom is the day's close. In either instance, the length of the candlestick body reveals the strength of buying or selling sentiment. Candlestick shadows represent the trading range of the security/asset that occurred anytime after the open and prior to the close with the top shadow representing the session's high price and the bottom shadow representing the sessions low price.



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


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