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Candlestick Charts

A candlestick chart packs four pieces of information into a single picture for any given timeframe (e.g., 1 Day).

1. The Body (Thick Part)

The thick part of the candle shows the Opening and Closing price.

  • A **Green** body means the close was higher than the open (the stock went up).
  • A **Red** body means the close was lower than the open (the stock went down).
  • 2. The Wicks (Thin Lines)

    The thin lines sticking out of the top and bottom are called wicks or shadows. They show the highest and lowest price reached during that time period.

    A candlestick with a very long wick at the bottom means that sellers tried to push the price down heavily, but buyers instantly rejected it and pushed it back up. This is usually a strong signal that the price is about to go up.