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Academy/Reading Charts/Candlesticks Explained
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Lesson 1 of 2

Candlesticks Explained

The building blocks of charts

Each "candle" shows what happened to a stock's price over a period of time.

A candle has 4 parts:

  • Open - Where the price started
  • Close - Where the price ended
  • High - The highest it went
  • Low - The lowest it went

Colors:

  • 🟢 Green = Price went UP (closed higher than it opened)
  • 🔴 Red = Price went DOWN (closed lower than it opened)

The "body" shows open-to-close. The "wicks" show the highs and lows.