Technical Analysis

Candlestick Chart

A candlestick chart is a type of financial chart that represents price action as a series of candlesticks. Each candlestick shows the open, high, low, and close price for a given time period. The body represents the open-to-close range; the wicks represent the high and low.

Why it matters for traders

Candlestick charts are the most widely used chart type by active traders because they convey more information than line charts — specifically showing the relationship between open and close, and the extremes of price action within each period.

How Tradapt tracks this

Tradapt's Backtest and Replay features use candlestick charts to display historical price action on your trades.

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Frequently asked questions

How do you read a candlestick chart?

A green (bullish) candlestick means the price closed higher than it opened. A red (bearish) candlestick means it closed lower. The body height shows the open-to-close range; the wicks show the full high and low of the period.

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