A candlestick chart is a form of technical analysis chart that displays the open, high, low, and close price of a financial instrument for each time period.
The body of the candle shows the range between the opening and closing price, while the wicks (or shadows) represent the extreme high and low prices within that period. A candle where the closing price is above the opening price is typically shown in green or white and indicates buying pressure, while a candle with a closing price below the opening price is shown in red or black and indicates selling pressure.
Candlestick patterns such as Doji, Hammer, Engulfing, or Morning Star can provide signals about potential trend continuation or reversal.
Candlestick charts are the most widely used charting format in trading.
