Candlestick charts are essentially charts made up of individual candles that traders use to analyze market activity. A candlestick chart involves determining where a price began, where it closed, and indeed the pricing highs and lows during a given period. All financial markets can benefit from price movement information about trends and reversals. Candlestick patterns may appear on forex charts and can indicate trend reversals or continuations. Individual candlestick formations can potentially signify buy or sell entry in the market.

A candlestick chart is a type of bar chart that tracks the high and low prices in the time frame it’s shown. The opening price is found at the top, or "candlestick," and the closing price for the period is found at the bottom. One candlestick represents one day's trading.

The candlestick chart is a type of financial diagram that combines the present value of an asset with the trading range for the day. This makes it easier to determine what the market wants in terms of pricing, liquidity, and volume.