A visual charting tool used in technical analysis to represent price movements of a financial asset over a specific time period. Each candlestick shows four key data points: the opening price, closing price, high, and low for that time frame. The body of the candlestick indicates the price range between open and close, while the wicks (or shadows) represent the highs and lows. Green or white candles usually signify upward movement, while red or black indicate downward movement. Candlestick patterns, such as dojis or engulfing patterns, help traders analyse market sentiment and predict future price action.
Example:
A daily candlestick showing a long lower shadow indicates buyers pushed prices higher after early selling pressure.
