Candlestick

Have you ever seen a candle? It’s like a stick with wax on it and a wick in the middle that you light to make a flame. Well, imagine if you used that same idea to show how the price of something, like a stock or a commodity, changes over time. That’s what a candlestick chart does!

Each little "candle" on the chart represents a specific time period, like a day or a week. The candle is made up of two parts: the body and the wick.

The body of the candle represents the opening and closing prices for that time period. If the candle is green, it means the price went up during that time period, and if it’s red, it means the price went down.

The wick of the candle represents the highest and lowest prices that the stock reached during that same time period. It’s like the high point and the low point of a roller coaster ride!

By looking at a series of candlesticks, you can see how the stock’s price has been changing over time. It can help you figure out if the stock is generally going up or down, and whether it’s a good time to buy or sell.

So next time you see a candlestick chart, just remember that each little candle is like a piece of a story that shows how the stock is doing over time, just like a lit candle tells a story with its flame.