What is Candlestick Chart?
A candlestick chart is a price chart that displays the open, high, low, and close prices for each time period using rectangular bodies and thin wicks, making it easy to visualize price action.
Candlestick Chart Explained
Each candlestick tells a story about the battle between buyers and sellers. A green (or hollow) candle means the close was higher than the open — buyers won. A red (or filled) candle means the close was lower — sellers won. The body shows the open-to-close range, and the wicks (or shadows) show the high and low of the period. Specific candlestick patterns can signal reversals or continuations.
Real-World Example
A stock opens at $50, drops to $47, then rallies to close at $52. This creates a hammer-like candlestick with a long lower wick and a body near the top — a bullish signal showing buyers rejected the lower prices.
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