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Lesson 1 of 5 · 5 min read

Reading candlesticks

The building block of every price chart: the candle.

What a single candle tells you

Every candle shows 4 prices over a period: open, close, high and low. The 'body' is open→close, the thin 'wicks' are the extremes. Green = closed higher than it opened, red = lower.

HighLowOpenCloseHighLowOpenCloseBullish ▲Bearish ▼
One candle = the open, close, high and low of a period. Green = up, red = down.

What the shape says

A long green body = strong buyers. A long lower wick = sellers tried to push down but buyers won (often a small reversal signal). Long wicks = doubt/struggle.

Timeframe matters

A candle can span 1 minute, 1 day or 1 week. Day-traders look at minutes; investors at daily or weekly candles. Same picture, different meaning.

Remember this

  • Every candle shows four prices: open, close, high and low.
  • Green = closed higher than it opened, red = lower; the body is open→close.
  • Long wicks reveal doubt or a struggle between buyers and sellers.
  • The same picture means something different per timeframe (minute vs. week).

There is a quiz for this lesson

2 questions that check whether it stuck. They live in the app, because a quiz nobody grades teaches nothing.

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Reading candlesticks