Candlestick Charts

A standard Candlestick chart contains a series of multiple individual candlestick data points, but as you can see here, each data point looks every different compared to a data point on a line graph.

Here, we are taking a look at an individual candlestick. The first thing that you notice is why a candlestick is such an appropriate name for this type of chart. Each data point looks like a candle with two wicks.

First: Note that candlestick charts typically have two colors of candlestick in them. In this case, we have a black and gray candlestick. A black candlestick indicates that the currency pair closed lower than it opened at. A gray candlestick indicates that the currency pair closed higher than it opened.

The two wicks respectively represent the highest and lowest price that the currency pair has traded for the day. Collectively, these two points indicate the daily trading range.

The edges of the body of the candle represent where the currency opened/closed at for the day. For the black candlestick (the down day), the top edge represents the open price and the bottom edge represents the closing price. This is reversed for the gray candlestick (the up day).