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Browse terms245
Browse terms245

Core terms

Candlestick

A chart mark showing the open, high, low and close of one time interval. The thick body spans the open and close; thin wicks show the high and low.

Each candle covers one interval: one minute, five minutes, a day. The body runs from the open to the close, and the wicks extend to the interval's high and low. On US charts a candle that closed above its open is usually green or hollow, and one that closed below its open is red or filled; Chinese charts traditionally use the opposite colors.

A candle summarizes four prices and hides the path between them. The same candle can come from a steady climb or from a spike and a crash.

What traders should verify

Check the candle interval and whether the chart includes extended hours before reading a pattern. A one-minute candle in premarket may be built from a handful of trades.

Do not conflate

Candlestick pattern names are trader usage; their predictive value is not established by any official source.

Primary source

Trader usage: there is no official definition, and platforms and tools may calculate it differently.

Related glossary terms

Guides and tools