A candlestick chart is a type of financial chart used to represent price movements in financial markets, such as the foreign exchange market. Each candlestick represents a specific period of time, typically ranging from one minute to one day, and displays the opening, closing, high, and low prices for that period.
The body of the candlestick represents the opening and closing prices for the period, with the color of the body indicating whether the price has gone up (green or white) or down (red or black). The lines above and below the body, called wicks or shadows, represent the highest and lowest prices reached during the period.
Candlestick charts are a popular tool for technical analysis, as they allow traders to quickly and easily identify patterns and trends in price movements. Some common candlestick patterns include the Doji, Hammer, and Engulfing patterns, which can be used to identify potential reversals or continuation of trends.