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Candle Chart

A candle chart, also known as a candlestick chart, is a type of financial chart used to represent the price movements of an asset, such as a stock or currency, over a specific time period. Each candlestick shows four key data points: the opening price, the closing price, the highest price, and the lowest price for the selected period. The body of the candlestick shows the difference between the opening and closing prices, while the "wicks" or "shadows" indicate the high and low prices.

Example

A green (or hollow) candlestick on a chart shows that the asset’s closing price was higher than its opening price, indicating a bullish trend, while a red (or filled) candlestick indicates that the closing price was lower than the opening price, signaling a bearish trend.

Key points

• A candle chart shows price movement over a specified time period using candlesticks.

• Each candlestick displays the open, close, high, and low prices.

• Widely used in technical analysis to identify trends and patterns.

Quick Answers to Curious Questions

It provides the opening, closing, highest, and lowest prices for an asset over a specific period, helping traders analyze price movements.

Traders use candle charts to identify patterns and trends that may indicate future price direction, such as bullish or bearish reversals.

Green or hollow candles indicate that the closing price is higher than the opening price (bullish), while red or filled candles indicate that the closing price is lower than the opening price (bearish).