Our word of the day is “Candlestick or Japanese Candlesticks”

Is a way to chart prices that displays the high, low, opening and closing prices for

an asset for a specified time frame. The wide part of the candlestick is called the "real

body" and tells investors whether the closing price was higher or lower than the opening.

Depending on the time frame of the chart, each candle represents a time period of a

specific length, except for the most recent, unfinished candle.

The candlestick's shadows show the high and lows and how they compare to the open and

close. A candlestick's shape varies based on the relationship between the high, low,

opening and closing prices. Candlesticks are represented by two different colors depending

if they are bullish (the closing price was higher than the opening price) or bearish

(the closing price was lower than the opening price).

The different body colors help us to quickly tell if the candlestick is bullish or bearish

and can be set to any color. Candlesticks reflect the impact of investors' emotions

on security prices and are used by technical analysts to determine when to enter and exit

trades. Candlestick charting is based on a technique developed in Japan in the 1700s

for tracking the price of rice.