A candlestick chart is a popular method for visualizing prices of stocks, commodities and currencies.
A candlestick chart differs from a line chart or a point chart in that prices are represented by rectangular “candles” that can give information about opening and closing prices, as well as high and low prices during the time period being shown.
Candlesticks are typically colored, with green candles representing days that price closed higher, and red candles representing days that price closed lower.
This makes it easy to see trends developing at a glance. The location of the opening price on a candlestick will depend on whether prices closed higher or lower.
If prices close higher the bottom of the candle is the open and the top is the close. If prices close lower the top of the candle is the open and the bottom is the close. A candlestick can also include what are known as wicks. These are lines that extend in either direction from the candlestick, representing the high and low prices of the time period being charted.