Often used in
recording and analyzing the price of a
commodity or
security, this
chart packs a large
amount of
data in a small space. The candlestick
symbol represents a narrow vertical rectangle (box) with short straight
lines (called upper and lower 'shadows' or 'wicks') extending from the center of each end. If the
closing price of the item is lower than its opening price, the box is usually shown in solid black
color and is called 'filled.' If the closing price is higher, the box is left
blank or white and is called 'unfilled.' In a filled box, the top-end designates the opening price, and the bottom-end the closing price.
In an unfilled box, the top-end designates the closing price, and the
bottom end the opening price. Length of the top wick designates the highest price for which the item was sold in the specified
period. Length of the bottom wick designates the lowest price for that period. The width of the box is usually
proportional to the
volume of trading. Price is measured along the vertical axis of the chart, and time along the horizontal axis. Invented in Japan, it is a type of box
graph and often has several additional symbols
attached to it to
convey other bits of
information. Called also box and whisker
diagram or candle chart.