A candlestick summarises four prices for one period: the open, the close, the high and the low. The wide body shows the distance between open and close, and the thin lines above and below, called wicks or shadows, show the extremes. Because a candle compresses a whole period into one mark, the same price looks very different on a five-minute chart from the daily.
Forex glossary
Candlestick
Related term
Timeframe
A timeframe is the length of market activity one candle or bar represents, from one minute up to monthly. Higher timeframes smooth out noise and produce fewer s…
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