What is a candlestick chart?

One day of a stock: it opens at $20.00, trades as high as $21.50 and as low as $19.60, and closes at $21.00. The candle's body runs from $20.00 to $21.00. The close is above the open, so it is drawn as a rising candle, on most charts green or hollow.

The thin line above the body, the upper wick, reaches $21.50, and the lower wick reaches $19.60. A day that opened at $21.00 and closed at $20.00 would have the same body, drawn as a falling candle, usually red or filled.

JagSim's chart draws candles by default, and Chart type switches it to bars or a line. The Interval row sets how much time each candle covers, from 1 minute to 1 day, and the chart writes the open, high, low and close of the candle under your pointer at its top left. Volume can be shown under the candles. The chart and these controls are on every plan, Free included.

A line chart shows only where the price ended each period. A candle also shows where it started and how far it travelled on the way, which tells you whether a period was calm or wild even when it closed where it began.

What do the colors on a candlestick chart mean?

A rising candle, where the close is above the open, is usually green or hollow. A falling candle is usually red or filled. Colors are a chart setting, not a rule.

What does a long wick mean?

The price traded far from where it ended the period. A long upper wick means the price went up during the period and came back down before the close.

Which candle size should I use?

It depends on how long you hold. A day trader may watch 1-minute or 5-minute candles, and a longer-term investor daily ones. The same stock can look calm on one and choppy on another.

Do candlestick patterns predict prices?

No. Patterns describe what the price did; they do not say what it will do next. Treat them as one input, not a signal on their own.