Okuzeka
Investing & the Stock Market vocabulary · Technical & Fundamental Analysis

Candlestick chart

Meaning in investing & the stock market, with examples

/ˈkændlstɪk tʃɑːrt/nounCommon term

In investing & the stock market, candlestick chart means: A price chart in which each period is shown as a 'candle': the body shows the opening and closing prices, and thin lines show the highest and lowest prices.

In Turkish: mum grafik, mum çubuğu grafiği

How it is used

The default chart on most trading platforms. Traders read candles and patterns with names such as doji, hammer and engulfing. A green or white candle usually means the close was above the open; a red or black one means it was below. The thin lines are called wicks or shadows.

Example sentences

  1. On the daily candlestick chart, the stock formed a long red candle after the news.

  2. I prefer a candlestick chart because it shows the open, high, low and close at a glance.

Common collocations

  • daily candlestick chart
  • candlestick pattern
  • red candle
  • green candle
  • technical analysisA way of studying past prices and trading volume on charts to identify trends and patterns that traders use to time their buying and selling.
  • moving averageThe average price of a security over a fixed number of recent days, recalculated every day, used to smooth out short-term swings and show the trend.
  • support levelA price level where a falling stock has often stopped and turned back up in the past, because buyers tend to step in at that price.
  • trading volumeThe number of shares or contracts traded, or their total value, during a given period such as one day.

More terms: Technical & Fundamental Analysis

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This page explains English vocabulary for learners. It is not financial advice.