Definitions for "Candlestick Charts"
Candlestick charts are the Japanese version of bar charting and have become very popular in recent years among western chartists. The Japanese candlestick records the same four pieces of information as the bar chart – high, low, open & close. A thin line (called the shadow) shows the day’s price range from the high to the low. The wider portion of the candle is called the real body and measures the distance between the open and the close. The real body has a different colour depending on whether the trading interval closed higher or lower than the open. If the close is above the open the colour is pale or green, if the close is lower the colour is dark or red.
technical analysis charting method.
A charting method developed in Japan in the 1700s. The high and low for the time period are described as shadow and plotted as a single line. The price range between the open and the close is plotted as a box or rectangle on the line. If the market closes above the open, the body of the box is white or empty. If the close is below the open, the body of the box or rectangle is black.