7.3What is a candlestick?
1What is it?
A candlestick shows one period’s open, high, low and close (OHLC). The thick part is the body (open to close); thin lines are wicks (high and low).
2Why does it exist?
One candle tells the story of a whole period: who won, buyers or sellers, and how hard they fought.
3Diagram
4Quick revision
- Body = open to close.
- Wicks = high and low.
- Colour shows direction.
5Knowledge check
Q1. What does the body show?Show answer
The range between open and close.
Q2. What do the wicks show?Show answer
The high and low.
Q3. Where did candlesticks originate?Show answer
Japan (18th-century rice traders).