Stock Market Glossary
Candlestick
Technical chart representation with opening, closing, high and low prices of a period.
In brief: Technical chart representation with opening, closing, high and low prices of a period.
Meaning in practice
Candlesticks show a body (open to close) and wicks (high and low) per period. Certain formations such as Hammer, Engulfing or Doji provide indications of changes in mood and are part of the standard repertoire of every chart technician.
Context for investors and traders
The term helps put market information into context. Its relevance depends on the instrument, investment horizon and current market situation, so it should be read with other data and a personal risk framework.
How to use this in practice
Use the term first to describe the situation and add verifiable data: time frame, benchmark, costs and liquidity. Only then does it become an assessment that can be connected to an investment objective and risk budget.
What to keep in mind
Avoid false precision. Many market terms describe probabilities or historical patterns; they neither guarantee a return nor replace the review of a specific security.
