A Glimpse at Candlestick Charting

Candlestick charting provides a visual representation of price information. A candle includes prices for the open, close, high and low of one price point. The price can be daily, weekly, monthly or any other interval. The distance between the open and close is called the body of the candle. The distance between the high and the top of the body is the upper shadow. And the distance between the bottom of the candle and the low is the lower shadow.

If the close is higher than the open the body of the candle is white. If the open is higher than the close the body is black. Many software applications show a white candle in green and a black candle in red.