A tool used to understand present prices and predicting future price actions. By the understanding of this, the trader knows when best to buy and sell, thereby making more profits in his transactions or A chart that indicates the trading range for the day as well as the opening and closing price. If the open price is higher than the close price, the rectangle between the open and close price is shaded. If the close price is higher than the open price, that area of the chart is not shaded.

More On This Topic

Link to This Definition
Did you find this definition of CANDLESTICK CHART helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary