What does a candlestick tell you about a stock?

Each candlestick represents one day’s worth of price data about a stock through four pieces of information: the opening price, the closing price, the high price, and the low price. The color of the central rectangle (called the real body) tells investors whether the opening price or the closing price was higher.

What is a daily Candlestick?

Just like a bar chart, a daily candlestick shows the market's open, high, low, and close prices for the day. The candlestick has a wide part called the "real body." This real body represents the price range between the open and close of that day's trading.

Why are candlesticks called candlesticks?

Candlesticks are so named because the rectangular shape and lines on either end resemble a candle with wicks. Each candlestick usually represents one day’s worth of price data about a stock. Over time, the candlesticks group into recognizable patterns that investors can use to make buying and selling decisions.

What is a bullish candlestick chart?

Candlestick charts are useful for technical day traders to identify patterns and make trading decisions. Bullish candlesticks indicate entry points for long trades, and can help predict when a downtrend is about to turn around to the upside. Here, we go over several examples of bullish candlestick patterns to look out for.