What are candlestick charts used for?

Candlestick charts are used primarily in technical analysis, which is a process through which investors and analysts attempt to predict price changes in securities based on factors like chart patterns, trading volume, and historical data rather than company fundamentals.

What is a candlestick in trading?

A candlestick is a type of price chart used in technical analysis that displays the high, low, open, and closing prices of a security for a specific period. It originated from Japanese rice merchants and traders to track market prices and daily momentum hundreds of years before becoming popularized in the United States.

What is a daily candlestick chart?

Many algorithms are based on the same price information shown in candlestick charts. Emotion often dictates trading, which can be read in candlestick charts. Just like a bar chart, a daily candlestick shows the market's open, high, low, and close prices for the day.