Glossary
Candlestick: meaning, example and why it matters
A chart symbol summarising one period of trading with four prices: open, high, low and close. The thick body spans open to close; thin lines (wicks) show the high and low.
Worked example
A candle that opens at ₹100, reaches a high of ₹108, falls to a low of ₹97 and closes at ₹105 has a body from 100 to 105, an upper wick up to 108 and a lower wick down to 97.
Illustrative numbers for explanation only. They are not market data, a forecast or a suggestion.
Why it matters
One candle compresses a whole period of trading into four prices, so a chart of candles shows both the range and the open-to-close move of each period.
Related terms
See it in practice
Frequently asked questions
What do the colours of a candle mean?
Most charts use one colour when the close is above the open and another when it is below, but colours are a chart setting rather than a rule. Check the legend of the chart you are using.
Is this page investment advice?
No. Candlestick is explained in general terms with illustrative numbers. Market Dekho is not a SEBI-registered Research Analyst or Investment Adviser.
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Educational content, not investment advice. Market Dekho is not a SEBI-registered Research Analyst or Investment Adviser. Spotted a mistake? Email marketdekho01@gmail.com.