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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
Jo, "Expert system for predicting stock market timing using a candlestick chart," Expert Systems with Applications, vol.
Quan, "Stock prediction by searching for similarities in candlestick charts," ACM Transactions on Management Information Systems, vol.
(2) Use indicator functions to generate indicators on the candlestick chart.
(3) Transform the candlestick chart and indicators into the format of transactional DB.
Candlestick types How Fairbot shows candlestick chart and other indicators
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.
<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>
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.
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.
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.