Candlestick Charts | Trading Lingo
Candlestick Charts | Trading Lingo
![[Image: 623837.png]](https://traderscontent.livetraders.com/terminology/623837.png)
Candlestick Charts
Candlestick charts are what most active day traders will use to help them establish a basis for taking a trade. A candle stick includes 4 pieces of information. The open price, the close price, the high of the period price, an the low of the period price. When these 4 pieces of information come together, candle sticks can take shapes that communicate market sentiment. For instance, a candle that opened at 10.00, had a high of 10.50, closed at 9.90, and had a low of 9.90, will appear very weak or bearish. The stock spiked up but was unable to hold those levels and sold off. A simple line chart or bar chart would have not been able to communicate the same meaning to us.
Candlestick Charts
Candlestick charts are what most active day traders will use to help them establish a basis for taking a trade. A candle stick includes 4 pieces of information. The open price, the close price, the high of the period price, an the low of the period price. When these 4 pieces of information come together, candle sticks can take shapes that communicate market sentiment. For instance, a candle that opened at 10.00, had a high of 10.50, closed at 9.90, and had a low of 9.90, will appear very weak or bearish. The stock spiked up but was unable to hold those levels and sold off. A simple line chart or bar chart would have not been able to communicate the same meaning to us.