Trading & Technical Analysis

What is a candlestick chart and how do you read one?

A candlestick chart is a price chart where each candle shows the open, high, low, and close for a set time period, giving a compact view of how price moved within that window. The candle body spans the open and close, while the thin wicks mark the highest and lowest prices reached; color convention indicates whether the close was above or below the open. For example, a long lower wick shows price fell during the period but recovered before close. Reading the sequence of bodies and wicks helps describe momentum and indecision over time.