How to read a candlestick chart
Each candle on a chart shows what price did during one period of time: one minute, one hour or one day, depending on the timeframe you choose.
One candle tells you four prices:
- Open: where the period started;
- Close: where it ended;
- High: the highest price reached;
- Low: the lowest price reached.
The thick part is the body (between open and close). The thin lines are the wicks (they reach to the high and the low).
Colours: a bullish candle closed higher than it opened; a bearish candle closed lower. Your platform lets you choose the colours.
Timeframes: on the H1 timeframe each candle is one hour; on D1, one day. Higher timeframes show the bigger picture; lower ones show the detail.
Practise: open one market on your demo, switch between H1 and D1, and label three candles: open, high, low and close.
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