The candlestick's body (the area between the open and the close) displays the opening and closing prices and how they compare to high and low. The wide part of the candlestick is called the "real body" and tells investors whether the closing price was higher or lower than the opening price.
It originated from Japanese rice merchants and traders to track market prices and daily momentum hundreds of years before becoming popularized in the United States. By default, it is set to daily in the cTrader chart.Ī candlestick is a type of price chart used in technical analysis that displays the high, low, open, and closing prices of a security for a specific period. It tends mostly to represent trading patterns over short periods of time, often a few days or a few trading sessions. Like the Bar Cart, it represents all four prices of a security - open, high, low, and closing (OHLC), but with open and close represented in the thick body and high and low in the "candlewick".Ĭandlestick patterns are used to predict the future direction of price movement.
The Candlesticks Chart is considered to be the most popular chart type, also the oldest one, developed in the 18 th century.
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