What is Candlestick Chart? - Definition & Explanation

Definition

A charting method that displays open, high, low, and close prices as visual "candles."

Candlestick Chart Explained

A candlestick chart displays the open, high, low, and close prices for each time period as a visual candle shape. Originated in 18th-century Japan. Candlestick patterns provide insight into market psychology and potential reversals.

Candlestick Chart - Frequently Asked Questions

Day traders use 1-minute to 1-hour charts, swing traders use 4-hour to daily charts, and position traders use daily to weekly charts.

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