Candlestick
Definition
A type of price chart showing open, high, low, and close for a time period as a 'candle' shape.
Detailed Explanation
Candlestick charts originated in 18th century Japan for rice trading. Each candle shows four prices: open, close, high, and low. The body (thick part) represents open-to-close range. If close > open, the body is typically green/white (bullish). If close < open, it's red/black (bearish). The wicks (thin lines) show the high and low. Candlestick patterns like Hammer, Doji, and Engulfing provide trading signals.
Example
A bullish engulfing candle occurs when a large green candle completely engulfs the prior red candle's body, signaling potential reversal.