A candlestick is formed on a price chart by plotting the open, high, low, and close prices of an asset within a specific time frame, such as minutes, hours, days, or weeks. If the closing price is higher than the opening price, the candlestick is typically colored green or white, indicating a bullish candle. Conversely, if the closing price is lower than the opening price, the candlestick is usually colored red or black, signifying a bearish candle. The wicks or shadows above and below the body represent the price extremes reached during that time frame.