Shadow or Wick

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Definition of 'Shadow or Wick'

A candle on a candlestick chart will usually have a wick both above and below the body of the candle. A wick is also called a shadow. A candle represents the open, high, low and close prices over a given time period. If the security's price opened lower than it closed then the first wick on the candle will be between the closing price and the high price and the second wick between the open price and the low price. The opposite is true if the open was above the close.

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Red and Black Candle

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Green and White Candles

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