Facts on candlesticks

By Metro Creative

Traders use various tactics to analyze markets. Candlesticks are a chart that help traders predict market movements. Depending on the price chart, a candlestick can show an asset’s price movement over a set amount of time, whether that’s a minute or a day.

According to Investopedia, the candlestick originated from 18th century Japanese rice merchants and traders before becoming popular in the United States and elsewhere. The candlestick will display the high, low, opening, and closing prices of the security. It resembles a rectangle or square “body” with lines above and below the body called “shadows.”

The top or bottom of the body refers to the opening and closing prices. The upper shadow reflects the high price, and the lower shadow the low price. If the stock closed lower, the body of the candlestick will be red or black. If the stock closed higher, it will be green or white.

— Metro Creative