Candlestick
A chart element showing a period's open, high, low and close as a body between open and close with wicks to the extremes.
How it is identified
Body = distance between Open and Close; Upper Wick = High - max(Open, Close); Lower Wick = min(Open, Close) - Low
Unit
qualitative
In depth
The candlestick was developed for Japanese rice markets and its advantage over a bar chart is purely visual: the coloured body makes the relationship between open and close readable at a glance. A long body indicates the period closed far from where it opened, while long wicks indicate prices were reached and rejected within the period. All of this is description, not information beyond the four numbers themselves — a candlestick contains exactly the same data as an OHLC bar. Reading intent or emotion into a single candle attributes far more meaning to one period's four prices than they can carry.
Worked example
A candle opens at ₹500, reaches ₹512, falls to ₹494 and closes at ₹504. The body spans ₹500 to ₹504, the upper wick is 512 - 504 = ₹8 and the lower wick is 500 - 494 = ₹6.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Candlestick” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.