What is a Candlestick Chart?
A candlestick chart is a type of financial chart used to track the price movements of stocks over a specific period. It visually represents the opening, closing, high, and low prices within a selected timeframe, helping traders and investors analyse market trends.
How do candlesticks work?
Each candlestick consists of three main parts:
Body: The rectangular section that shows the opening and closing prices.
Wick: The thin lines above and below the body, representing the highest and lowest prices during the period.
Color: Green indicates that the closing price was higher than the opening price (price increase), while red indicates that the closing price was lower than the opening price (price decrease).
Why use a candlestick chart?
Candlestick charts provide an easy way to understand stock price movements at a glance. Unlike simple line charts, candlestick charts show whether prices moved up or down within a period and by how much. This makes it easier to identify:
Trends: You can quickly spot if a stock has been going up or down over time.
Market Sentiment: By looking at the colour and shape of candlesticks, you can get an idea of how buyers and sellers are reacting.
Patterns: Some candlestick formations might indicate price changes, helping users make informed decisions.
Candlestick charts can display price movements in different time intervals, such as:
1 day (1D)
1 week (1W)
1 month (1M)
3 months (3M)
Year to date (YTD)
Where can I find candlestick charts in the app?
Navigate to the Invest tab and select a stock.
On the stock detail page, press the wheel at the bottom of the chart to switch to the Candlestick Chart.
Hover over a candlestick to see specific price details.
Use the timeframe selector to adjust the period displayed.
Investing in stocks involves risks, and past performance is not an indicator of future results. Candlestick charts are tools for analysis and should not be used as the sole basis for making investment decisions. Capital is at risk.
How do candlesticks work?
Each candlestick consists of three main parts:
Body: The rectangular section that shows the opening and closing prices.
Wick: The thin lines above and below the body, representing the highest and lowest prices during the period.
Color: Green indicates that the closing price was higher than the opening price (price increase), while red indicates that the closing price was lower than the opening price (price decrease).
Why use a candlestick chart?
Candlestick charts provide an easy way to understand stock price movements at a glance. Unlike simple line charts, candlestick charts show whether prices moved up or down within a period and by how much. This makes it easier to identify:
Trends: You can quickly spot if a stock has been going up or down over time.
Market Sentiment: By looking at the colour and shape of candlesticks, you can get an idea of how buyers and sellers are reacting.
Patterns: Some candlestick formations might indicate price changes, helping users make informed decisions.
Candlestick charts can display price movements in different time intervals, such as:
1 day (1D)
1 week (1W)
1 month (1M)
3 months (3M)
Year to date (YTD)
Where can I find candlestick charts in the app?
Navigate to the Invest tab and select a stock.
On the stock detail page, press the wheel at the bottom of the chart to switch to the Candlestick Chart.
Hover over a candlestick to see specific price details.
Use the timeframe selector to adjust the period displayed.
Investing in stocks involves risks, and past performance is not an indicator of future results. Candlestick charts are tools for analysis and should not be used as the sole basis for making investment decisions. Capital is at risk.
Updated on: 25/02/2025
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