Reading Candlestick Charts

Each candlestick represents price movement over a fixed period — a minute, an hour, a day — and shows four values: the open, close, high, and low. The thick "body" shows the range between open and close; the thin "wicks" show the high and low reached during that period.

A green (or unfilled) candle usually means the close was higher than the open — buyers were in control. A red (or filled) candle means the close was lower than the open — sellers were in control.

Individual candle shapes carry information too: a long wick often shows a price rejection, while a small body suggests indecision. Reading a handful of candles together — not just one in isolation — is where most of the useful signal comes from.