DEFINITION of 'Red Candlestick'. The component of a candlestick chart that represents a downward movement in the underlying price. A red candlestick is composed of the period's high, low, opening and closing prices.If the closing price is lower than the day's opening price, then the body of the candle is red or black.Also known as a black candlestick or a closed candlestick.he component of a candlestick chart that represents a downward movement in the underlying price. A red candlestick is composed of the period's high, low, opening and closing prices.