// TRADING TERMINOLOGY

What is Candlestick Chart?

A style of financial chart used to describe price movements of a security, derivative, or currency.

In-Depth Explanation

Each "candle" typically shows one day, so a one-month chart may show 20 trading days as 20 candlesticks. They provide more visual information than line charts, showing the battle between buyers and sellers.

Practical Example

"Traders prefer candlestick charts over line charts because they show the intraday range and sentiment."

Related Terms

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