Candlestick charts originated from Japan and are a visual way of representing what happens each day.

It is very similar to the OHLC chart except that you have a red block for a day where the share price closed lower than it opened. Similarly, a green block indicates the share price closed higher than it opened. Specifically, these blocks will look like -

This is a candle from a bullish day as the price closes higher than it opens.

The second example shows a red candle from a bearish day, as the closing price is lower than the opening price.

Candlestick charting is a well developed field and devotees have identified a number of patterns that can assist a trader in making decisions. More of these patterns will be discussed in a later module.