Candlestick Chart
A price chart showing open, high, low and close as candle bodies and wicks.
A candlestick chart shows open, high, low and close as a body with wicks.
A candlestick chart shows each period as a body and two wicks. The body spans the open to the close, and the wicks show the high and low. Traders read the shape and colour of candles to gauge momentum and spot reversal patterns like doji and engulfing.
How It Works
- The body spans open to close
- Wicks mark the high and low of the period
- Candle shapes signal momentum and reversals
Trading Tips
Learn a handful of reversal patterns, not all of them
Read candles in context of support and resistance
Use them with the timeframe that matches your style
Candlestick Chart Example
Say three consecutive daily candles on gold show small bodies near the highs with shrinking upper wicks. Buyers keep closing strong with less rejection each day: absorption in progress, and the breakout that follows surprises only those who skipped the candles.
How Traders Use Candlestick Chart
Read bodies for conviction and wicks for rejection on every chart you open. Master five formations with context before touching exotic patterns. Candles describe. Structure decides.
Related Terms
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