Candlestick Chart
The candlestick chart is the most popular chart type for financial analysis.
Structure
Each candle represents one period (timeframe) and shows:
- Body: Open and Close prices
- Filled (red/black) when close < open (bearish)
- Hollow (green/white) when close > open (bullish)
- Wicks (Shadows): High and Low prices
When To Use
- Identifying trend direction
- Spotting reversal patterns
- Analyzing price momentum
- Most common for technical analysis
Comparison
| Feature | Candlestick |
|---|---|
| Shows OHLC | ✅ Complete |
| Visual clarity | ✅ High |
| Pattern recognition | ✅ Excellent |
| Best for | General analysis, patterns |