Candlestick patterns have been used for centuries to predict price movements. Learn the basics of this powerful tool.
Candlestick charts originated in 18th century Japan and have become the preferred charting method for traders worldwide. Each candlestick tells a story about the battle between buyers and sellers.
A candlestick has four key components: the open, high, low, and close prices for a specific time period. The body shows the open-to-close range, while the wicks (shadows) show the high and low.
Green (or white) candles indicate the close was higher than the open—bullish sentiment. Red (or black) candles show the close was lower than the open—bearish sentiment.