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Technical AnalysisC

Candlestick

A type of price chart showing the open, high, low, and close prices for a specific period. The body shows the open-to-close range while the wicks show the high and low. Originating from Japanese rice traders in the 18th century, candlestick charts are now the most widely used chart type in technical analysis, with specific patterns like doji, hammer, and engulfing providing valuable trading signals.

Example

The daily candlestick formed a bullish engulfing pattern at support, prompting several traders to enter long positions.