A candlestick chart visualizes open, high, low, and close prices over time. Each candlestick represents one period, such as a day or an hour. The body shows the difference between open and close, while the wicks show the high and low.
Purpose
Candlestick charts are widely used in financial markets because they summarize price movement within each time period compactly.
How to Read It
A rising period is often shown in white or green, and a falling period in black or red. Long bodies indicate large open-to-close movement; long wicks indicate wide intraperiod fluctuation.
Design Notes
- Keep time intervals consistent.
- Avoid overinterpreting individual shapes without context.
- Use volume or moving averages only when they add analytical value.
Summary
Candlestick charts are standard for financial time series because they show four price values in one compact mark.
