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Next, let’s explore the basic chart types. The most common is the **candlestick chart**, which provides a ton of information in a single glance. Each candlestick represents the price action over a specific period. The body of the candlestick shows the open and close prices, and the wicks (the lines extending above and below the body) show the high and low prices for that period. A green candlestick means the price closed higher than it opened (bullish), and a red candlestick means the price closed lower than it opened (bearish). Understanding candlesticks can give you a quick visual sense of market sentiment. You might also encounter line charts, which simply connect the closing prices over time, and bar charts, which show the open, high, low, and close prices for each period.
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