Definition
A candlestick is a type of chart used in the stock market to show how a stock’s price moves over a specific time. It shows four important values: opening price, closing price, highest price, and lowest price.
Example
For example, if a stock opens at Rupee 100, goes up to Rupee 110, falls to Rupee 95, and closes at Rupee 105, the candlestick will show all these price levels in one bar. If the closing price is higher than the opening price, it usually indicates a positive movement.
Caution
Candlestick charts help understand price movement, but they do not guarantee future trends. Investors should use them along with other indicators and analysis before making decisions.