The Candlestick Chart is another name for the Candlechart.
It is a chart of trading in financial vehicles such as stocks, indexes, commodities, and foreign exchange.
It is based on the familiar bar chart, but goes a step further by fleshing-out the price area between the open and the close so as to produce a tube or cylinder for that portion of the total price bar.
If the close is higher than the open, then the tube is left blank, or "white.
" If the close is lower than the open, then the tube is filled in, or made black.
The customer does not do the blanking or the filling.
That's done automatically as the information comes over the data feed wire.
A major advantage of the Candlechart is that it takes advantage of the candlesticks' uncanny ability to spot reversals of trend, as they are occurring or as then are forming Candlechart presentation is especially effective if the user has real time data delivery service; because then, especially in the "minutes" charts, as the size and the color of the candle change during trading, one can see, as in a movie, the trading psychology and tactics of the traders as they unfold.
The Candlesticks are known for their ability to forecast major changes in trend.
The trader needs to be able to capitalize on this ability by knowing the dozen or so key candlestick reversal patterns.
As it happens, they are very intuitive, easy to learn, and quick to learn.
This should take no more than a relaxed evening's "work" with the Candlechart; and once learned, they will never be forgotten.