Glossary entry
A candlestick chart displays each period's opening, highest, lowest, and closing prices. The body spans the open and close, while shadows or wicks extend to the high and low. Colors indicate the relationship between open and close under the chart's settings, allowing a compact view of price movement within each selected interval.
Illustrative example
A daily candle opens at 20, reaches 22, falls to 19, and closes at 21. Its body spans 20 to 21, with wicks beyond.
What to consider
A candle summarizes a period without showing the sequence of every trade. Visual patterns need context and do not guarantee reversal or continuation.
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