Whiskers

Hair is the term given to indicate the vertical lines that stretch out above and below the core boxes or bars on a graph of a financial product, asset, or security. These charts are frequently referred to as candlestick charts and the lines may likewise be communicated as wicks.

Every candlestick bar or segment of the chart will commonly contain a strong box (candlestick body) - framed by the opening and closing prices - alongside two whiskers/wicks that stretch out above and below the core box. The whiskers address the highest and absolute bottom recorded inside that period.

Normally, assuming the container and whiskers are red (or black), it means that the price of the underlying asset fell during that time span, and assuming that the case and whiskers are green this means the price rose during this period.

The whiskers reach out to the upper and lower limits that the price of the underlying asset hit during the time segment, though the container or candle indicates the opening and closing price of the asset during that period. Small whiskers show that the highest/most reduced price is close to the opening/closing price, though big whiskers demonstrate that the market experienced higher levels of volatility, moving further away from the opening/closing prices.

For instance, in the event that we are seeing a chart with a 10-minute segment per candle and the price opens at $5, tumbles to $1, ascends to $15 and closes the 10-minute time span at $10, this would be communicated as a green candle with a stubble from $1 (most minimal price during the period) to $5 (opening price), a strong green body candle from $5 (opening price) to $10 (closing price), lastly a hair from $10 (closing price) to $15 (highest price).

Hence, whiskers are a decent approach to measuring the volatility of an asset during a time span, far in excess of the opening and closing price for the time span.