candlestick chart

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Candlestick chart

A popular method of charting price fluctuations that displays an asset's opening, closing, high, and low prices for the period.  Points on a candlestick chart are represented as a box, called the real body, with a vertical line on both the top and bottom.  White-bodied boxes represent upward movement in the price of the asset: the bottom of the body is the opening price and the top of the body is the closing price.  Black-bodied boxes represent downward movement in the price of the asset: the bottom of the body is the closing price and the top of the body is the opening price.  In both cases, the top vertical line shows the high price for the period, and the bottom vertical line shows the low price for the period. See: Real body.

Candlestick Chart

A chart of a stock's performance over a given period of time where each trading day is represented by a drawing of what looks like a candle. The candle has wicks (called shadows) coming out of each end representing the high and low prices for each trading day. The candles are colored white a days where the price increases and black on days it decreases. For white candles, the bottom of the candle represents the opening price and the top is the closing price. It is the opposite for black candles. Candlestick charts are very important in technical analysis.

candlestick chart

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A variation of a bar chart in which the open and close prices are represented as the top and bottom of a rectangle surrounding a vertical line connecting the high and low prices. The appearance is of a barrel around a fence post. The body of the rectangle is filled if the closing price is lower than the opening price and blank if the closing price is higher than the opening price. Compare bar chart, line chart.
References in periodicals archive ?
One of the popular types of charts is a candlestick charts.
It also provides technical trading indicators such as Historic volatility, Percent Change, Bollinger Bands, Candlestick Charts, Directional Movement Index, and Trend Spotter and many more.
Therefore understanding moving averages, candlestick charts and other indicators will definitely give you an advantage and help turn you into a profitable sports trader.
Active trader and financial author Thomsett provides a comprehensive overview of candlestick charts, how they are created, how they work, and how traders at every interest and experience level can use them to deal with the confusion and uncertainty that characterizes the stock market.
lt;li>&nbsp;Provide traders with earlier indication of reversals: Candlestick charts are very effective in signaling potential reversals well before traditional bar or point charts and thus aid traders to time their entries and exits with better timing</li>
thanks Power Course Instructor's Response: The interpretation of candlestick charts has often been referred to as being more of an art than a science.
The Easy-to-Use Guide to Interpreting Candlestick Charts and Derivative Markets:
To better highlight price movements, modern candlestick charts (especially those displayed digitally) often replace the black or white of the candlestick body with colours such as red (for a lower closing) and blue or green (for a higher closing), as illustrated by the graphic below.
Other scalping techniques are similar to other trading styles in that they use bar or candlestick charts, and determine when and where to make trades using price patterns, support and resistance, and technical indicator signals.
Candlestick charts are far and away the most widely used charting format as they provide all the key pieces of price information (high, low, open and close) are accurately depicted and can be identified in glance.
They cover a range of methods and theories, including Drummond geometry for inter-bank trading, the TD Combo methods for spotting significant but obscure trends, interpreting candlestick charts, tracing the dynamics or price and time, working with Gann, understanding options-based technical indicators for stock trading, resuscitating point and figure analysis, applying market profiles to global trends, and taking a "Ten Commandment" approach.
CDT Unleashing the Power of Candlestick Charts to Pick the Best Stocks Steve Nison, CMT President, Candlecharts.