PDSnet Glossary

Term

Categories

Introductory Technical Fundamental Economics Opinion Sectors International Regulatory Other Markets

Versions

Name	synonyms = 1, variations = 2, abbreviations = 3

Publish: (0 = no, 1 = yes)

Definition

<p style="text-align: justify;">An individual display of the <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">high</span>, <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">low</span>, <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">open</span> and <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">close</span> of a specific <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">security</span> over a period of time. A candlestick <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">chart</span> is composed of multiple candles, each of which represent the <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">sentiment</span> of <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">bulls</span> and <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">bears</span> over the period chosen. The <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">body</span> of the candle shows the <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">opening price</span>s and <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">closing price</span>s of the security: a red/black candle is displayed when the closing price is below the opening price for the period; a green/white candle is displayed when the opening price is above that of the closing price for the period. The <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">shadow</span>s on the top and bottom of a candle express how high and how low the price went during the period, and comparing this to the open and close is important to determine investor sentiment. There are many candlestick <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">formations</span> which give <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">signals</span> in a chart and assist the investor in getting into and out of a <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">share</span>.</p>