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Candlestick

A chart bar showing the open, high, low, and close for one period, with a body and wicks.

The parts of a candlestickAn up candle and a down candle with the same high and low, labelled with open, high, low, close, the real body and the wicks.UP CANDLEclose above openHigh 41.00Close 40.30Open 38.20Low 37.40upper wickreal bodyopen to closelower wickDOWN CANDLEclose below openHigh 41.00Open 40.30Close 38.20Low 37.40Same high and low; only the open and close swap places.
The parts of a candlestick. One candle sums up a slice of time: the thick real body runs from the opening price to the closing price, and the thin wicks reach out to the highest and lowest prices traded. Colour tells you which way the body ran.

Each candle summarizes one timeframe period. The body spans open to close; the thin lines above and below, called wicks, mark the high and low. A close above the open is usually drawn green or white; a close below is red or black.

Candles are the most common way traders read price. Named patterns such as the doji and engulfing-candle describe particular body-and-wick shapes, but a candle is only information about one period; it is not a forecast.

Example: a daily candle opens at $50.00, trades as high as $52.40 and as low as $49.10, and closes at $51.80. The body is $50.00 to $51.80, with a $0.60 upper wick and a $0.90 lower wick.

Related: wick, doji, engulfing-candle, timeframe

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