Lesson 3 of 15
Candlesticks
A candlestick shows 4 pieces of information for a given time period:
- **Open** — price at the start of the candle - **High** — highest price reached - **Low** — lowest price reached - **Close** — price at the end of the candle
A **bullish** (green) candle closes higher than it opens. A **bearish** (red) candle closes lower.
The thin lines above/below the body are called **wicks** or **shadows** and represent price rejection.
Knowledge Check
8 questions
1.Which information does a candlestick NOT show?
2.What color is typically used for a bullish candle?
3.What color is typically used for a bearish candle?
4.A bullish candle closes _____ than it opens.
5.A bearish candle closes _____ than it opens.
6.What do the wicks (shadows) of a candle represent?
7.Which price point marks the beginning of a candle time period?
8.Which price point marks the end of a candle time period?