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The basics of a candlestick
As the candle is lit, the shadows cast by the candlestick demonstrate how the day's highs and lows relate to the start and end of the day. A candlestick's shape is influenced by connections between the day's high, low, and opening/closing prices, among other factors. Technical analysts use candlesticks to determine when to enter and exit positions based on investor sentiment. Candlestick charting was inspired by a Japanese rice-price-monitoring method developed in the late 1800s. Candlesticks can be used to trade any liquid financial asset, such as stocks, foreign currency, and futures.

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