Definition of Candlestick chart:
Often used in recording and analyzing the price of a commodity or security, this chart packs a large amount of data in a small space. The candlestick symbol represents a narrow vertical rectangle (box) with short straight lines (called upper and lower shadows or wicks) extending from the center of each end. If the closing price of the item is lower than its opening price, the box is usually shown in solid black color and is called filled. If the closing price is higher, the box is left blank or white and is called unfilled. In a filled box, the top-end designates the opening price, and the bottom-end the closing price. In an unfilled box, the top-end designates the closing price, and the bottom end the opening price. Length of the top wick designates the highest price for which the item was sold in the specified period. Length of the bottom wick designates the lowest price for that period. The width of the box is usually proportional to the volume of trading. Price is measured along the vertical axis of the chart, and time along the horizontal axis. Invented in Japan, it is a type of box graph and often has several additional symbols attached to it to convey other bits of information. Called also box and whisker diagram or candle chart.
Meaning of Candlestick chart & Candlestick chart Definition