A candlestick chart is a combination of a line-chart and a barchart.
It records four prices : open, close, high and low.
- The area between the open and the close is called the real body and price excursions above and below the real body are called shadows or leg.
- If the close price is higher than the open real body is white and if the close is lower then the open real body is black.
- Candlestick charts are visually superior to bar charts, and thus preferred by traders, because their coloured bodies help to identify support-resistance and trend lines and buy/sell signals.