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Analysis

Candlestick — definition & meaning

A chart bar showing the open, high, low and close for a period.

A candlestick shows four prices for a time period: the open, high, low and close. The 'body' spans open to close; the thin 'wicks' show the highs and lows reached.

A candle is usually coloured green/white when price closed higher and red/black when it closed lower. Reading sequences of candles is the basis of much technical analysis.

The information on Trding.io is for general information only and is not investment advice. Trading involves a real risk of losing money, and most retail traders lose. Never trade money you cannot afford to lose.

Related terms

Doji
A candlestick where the open and close are almost equal.
Engulfing pattern
A two-candle reversal signal where one candle fully covers the prior one.
Pin bar
A candle with a long wick showing rejection of a price level.
Technical analysis
Studying price charts and patterns to inform trading decisions.
Volatility
How much and how quickly a price moves over time.
Volume
The number of units traded over a period — a gauge of activity.

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