Constructing a Candlestick: A Core of Four
For any security, each day of trading includes four key components in terms of data: opening price, closing price, highest price traded on the day, and lowest price traded on the day. These four pieces of data are needed to construct the individual bars that make up candlestick charts. Several bars, created by using the data from several days or periods, are generated in succession to produce a full candlestick chart.
Price on the open
The first piece of data used to construct a candlestick is the opening price for the day. For stocks, in most cases, it’s the official opening price on a specified primary exchange.
Recording an opening price on a candlestick
On a single candlestick, the thin vertical line is the wick, and the thick part in the middle is the candle. The opening price on a single candlestick will always be either the top or ...