CANDLESTICKS
What Is a Candlestick?
A candlestick represents price movement over a specific period.
Every candle contains four key pieces of information:
Open
Where price started.
High
The highest price reached.
Low
The lowest price reached.
Close
Where price finished.
This is often referred to as OHLC.
Bullish Candle
A bullish candle closes higher than it opens.
Example:
Open = 1.3000
Close = 1.3050
Price increased during the period.
Bearish Candle
A bearish candle closes lower than it opens.
Example:
Open = 1.3050
Close = 1.3000
Price decreased during the period.
The Body
The body represents the distance between the open and close.
The Wick
The wick shows prices that were reached but not retained by the close.
A long upper wick may show that price moved higher but then experienced selling pressure.
A long lower wick may show that price moved lower but then experienced buying pressure.
Key Takeaways
Every candle shows:
- Open
- High
- Low
- Close
Candles allow you to understand what price did during a specific period.
Disclaimer
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
