Candlestick chart

Definition:

A popular method of charting price fluctuations that displays an asset's opening, closing, high, and low prices for the period. Points on a candlestick chart are represented as a box, called the real body, with a vertical line on both the top and bottom. White-bodied boxes represent upward movement in the price of the asset: the bottom of the body is the opening price and the top of the body is the closing price. Black-bodied boxes represent downward movement in the price of the asset: the bottom of the body is the closing price and the top of the body is the opening price. In both cases, the top vertical line shows the high price for the period, and the bottom vertical line shows the low price for the period. See: Real body.

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Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Implied volatility

The expected volatility in a stock's return derived from its option price, maturity date, exercise price, and riskless rate of return, using an option pricing model such as Black-Scholes.

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