What does a candlestick chart primarily display?

A candlestick chart primarily displays the daily high, low, open, and close prices of a security. Each "candlestick" on the chart represents a specific time period, such as a day, and visually conveys four key data points: the opening price at the beginning of the period, the closing price at the end of the period, and the highest and lowest prices that occurred during that period. This format allows traders and analysts to quickly assess the price movement and volatility of the security over time.

The information provided by candlestick charts is instrumental in technical analysis, as it helps identify trends, reversals, and potential price patterns. The visual cues of the candle's body and wicks enhance the trader's ability to make informed decisions, as it conveys not just where the price is at any given point, but the context of its movement within that time frame.