Charts & Candles
How price is drawn and read. These terms cover what a candle shows, the single-candle and multi-candle patterns traders watch for, and the basics of timeframes, volume and chart scales.
16
terms in this topic
7
with a chart or figure
16
taught in an Academy lesson
12
other topics
16 terms, A to Z
- 11beginner
- 5intermediate
- CandlestickA chart bar showing the open, high, low and close of a period, with a coloured body between open and close.
- DojiA candle whose open and close are almost equal: buyers and sellers fought to a draw.
- Engulfing patternA candle whose body completely covers the previous candle's opposite-coloured body.
- GapEmpty space on a chart where price opened away from the previous close and nothing traded in between.
- HammerA small body near the top with a long lower wick, after a decline: lower prices were rejected.
- Inside barA candle whose whole range sits inside the previous candle's range: a pause before a possible breakout.
- Log scaleA chart scale where equal heights mean equal percentage moves, not equal price amounts.
- MarubozuA big-bodied candle with little or no wick: one side controlled the whole period.
- Morning starA three-candle bottoming pattern: a strong red candle, a small pause candle, then a strong green one. Evening star is the bearish mirror.
- OHLCOpen, high, low and close: the four prices every bar or candle summarises.
- Shooting starA small body near the bottom with a long upper wick, after a rally: higher prices were rejected.
- Spinning topA small-bodied candle with wicks on both sides, showing indecision.
- Tick volumeThe number of price changes in a candle, used as a stand-in for volume in spot forex.
- TimeframeHow much time each candle covers: 1 minute, 15 minutes, 1 hour, 1 day and so on.
- VolumeHow much of an asset traded during each candle.
- WickThe thin line above or below a candle's body, reaching to its high or low.