A candlestick is a price chart indicator used in technical analysis. It displays the open, close, high, and low prices of a security for a particular time period. Candlesticks originated from Japanese rice traders and merchants in the 1700s to monitor market prices and daily momentum.
Tails of the candlesticks show the high and low of the day and how they compare to the open and close. The shape of candlesticks varies based on the connection between the high and low of the day, as well as the opening and closing prices.
To this day, candlesticks remain a dependable technique for trading any liquid financial asset including forex, stocks, and futures.