Image for Japan's candlestick charts

Japan's candlestick charts

Candlestick charts are a popular tool used in financial markets to visualize price movements over time. Originating from Japan in the 18th century, each "candlestick" represents four key price points: the opening price, the closing price, the highest price, and the lowest price for a specific time period. The body of the candlestick shows the opening and closing prices, while the wicks indicate the highest and lowest prices. If the closing price is higher than the opening price, the candle is typically colored green (bullish), while a lower closing price results in a red candle (bearish), helping traders identify market trends.