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Candlestick

A price chart that uses rectangles that range from the opening price to the closing price of each trading session. The rectangle is dark (usually black) if the closing price is lower than the opening price (a down day), or light (usually white) if the close is higher than the open (an up day). Candlestick charts, which originated in Japan, are very similar to bar charts, although they pre-date them by a number of years.

The high and low price extremes extend as vertical lines above or below these rectangles, forming "wicks" to the bodies of the candles represented by the rectangles. Of course, if the high and low of the day are identical to the open and close, no wicks will exist; conversely, if the open and close are the same price, no rectangle (body) will exist. Like bar charts, candlestick charts can be constructed on any time frame.

Articles related to Candlestick

The Big Saturday Interview: Steve Nison, King of Candlesticks
August 26, 2009
David Penn
Steve Nison remains the foremost authority in trading with candlesticks, and it is TradingMarkets' distinct honor to introduce him once more in this archive edition of The Big Saturday Interview. (more)
Profit in Patterns, Part 2: The Big Saturday Interview with Thomas Bulkowski
August 21, 2009
David Penn
If you trade stocks technically, then there's a pretty good chance you've encountered the work of Thomas Bulkowski. In Part 2 of our interview, we focus on some of the more critical chart patterns that market technicians and technical analysts need to know. (more)
Profiting in Patterns: The Big Saturday Interview with Thomas Bulkowski
August 14, 2009
David Penn
In part 1 of our conversation with Thomas Bulkowski, we learn about how he came to focus on studying and quantifying chart patterns in stocks, and how traders and investors can best take advantage of his research. (more)
Market Timing is Easier with Candlestick Signals
July 8, 2009
Stephen Bigalow
Learn how candlestick charts can maximize your market timing strategies by charting not the fundamentals of a trade, but more importantly the perception of fundamentals. (more)
Managing Candlestick Trades Successfully
March 31, 2009
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Why do candle charts attract so many traders serious about increasing profits and decreasing risk? Here's a look at why candle charts are the top choice for the world's most successful traders. (more)
TradingMarkets Making Great Traders: The Best of This Week's Trading Lessons
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Here are the best of the articles we published this week. We hope you enjoy them and prosper from them! (more)
TradingMarkets Making Great Traders: The Best of This Week's Trading Lessons
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Here are the best of the articles we published this week. We hope you enjoy them and prosper from them! (more)
How to Use Candlesticks to Identify Support and Resistance
February 27, 2009
Tina Logan
In a trading range, candlestick charting can be used to determine significant support and resistance points. TradingMarkets contributing writer Tina Logan help traders achieve an edge in today's competitive market. (more)
Candlestick Trading: The Basic of Bearish Engulfing Patterns, Part 2
September 8, 2008
Steve Palmquist
In this conclusion to Steve Palmquist's candlesticks trading tutorial, the use of backtesting to determine the most favorable market conditions to use the bearish engulfing pattern is discussed. (more)
TradingMarkets Making Great Traders - The Best of This Week's Trading Lessons
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Here are the best of the articles we published this week. We hope you enjoy them and prosper from them! (more)
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