Reading charts · 4 min
Reading candlestick charts
Each candle tells the story of one period (say 5 minutes or 1 day): where it opened, how high it went, how low it went and where it closed.
OHLC
Open, High, Low, Close. The thick body runs from open to close, the thin wicks reach the high and low.
Green and red candles
Green means the close was above the open (price rose). Red means it closed below the open (price fell).
What long wicks mean
A long upper wick means price went up but sellers pushed it back down. A long lower wick means buyers stepped in after a drop.
Timeframe
A 5 min chart shows moves within the day, a daily (1D) chart shows the bigger picture. Daily charts are easier to start with.
Quiz (3 questions)
1. A green candle means…
2. What does the thin wick show?
3. A candle with a long lower wick often shows…
This is for learning only, not advice on any stock or trade.