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Charts & Candles

Candlestick

Beginner

Also calledcandleJapanese candlestickbodybullish candlebearish candle

A chart bar showing the open, high, low and close of a period, with a coloured body between open and close.

What it means

Green (bullish) candles closed above their open; red (bearish) ones closed below. Candlesticks trace back to Japanese rice traders in the 1700s.

Illustrative example, not real market data.

In practice

One candle tells the story of its period. The body shows who won between the open and the close, the wicks show how far price travelled and was pushed back, and the size shows how much energy was behind it.

Traders read candles in context rather than one at a time: a large body closing through a level, a long wick rejecting one, or a run of small candles showing a pause. The same shape means more at an important level than in the middle of nowhere.

What to watch for

A candle is only final when it closes. A strong green candle can turn into a long upper wick in its last minute, so decisions based on a close should wait for the close.

Entrix Academy

Learn these terms step by step, one lesson free

Entrix Academy is the trading course inside EntrixAlgo. It teaches the ideas in this glossary with interactive lessons, practice and a final exam. It is part of Pro, and a free account opens one lesson of your choice.

  • 129 lessons, start anywhere
  • Practice on every lesson
  • Final exam and certificate