Basic Structure of a Candlestick

What is a Candlestick?

  • The body of the candlestick shows the opening and closing prices for the chosen time period.
  • A green (or white) body shows that the closing price was higher than the opening price, meaning the price went up. This is called a bullish candle.
  • A red (or black) body indicates that the closing price was lower than the opening price, meaning the price went down. This is called a bearish candle.
  • The longer the body, the more significant the price movement.
  • The lines extending above and below the body are called shadows or wicks.
  • The top shadow shows the highest price reached during the time period.
  • The bottom shadow shows the lowest price reached during the time period.
  • Long shadows indicate that the price fluctuated widely, while short shadows show that the price stayed near the opening and closing prices.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top