Investor Glossary-candlestickInvestor Glossary-candlestickInvestor Glossary-candlestickInvestor Glossary-candlestickInsightful stock market charts - Click here
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


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

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