A candlestick chart is a common way of showing how a price moved over time. Each candle represents a set period, such as an hour or a day, and summarises four values: the opening price, the closing price, and the highest and lowest points reached during that period.
The body of the candle spans the open and close, while thin lines above and below, called wicks, mark the high and low. Colours usually indicate whether the price rose or fell over the period, making it easy to scan a chart and see the general direction at a glance.
Candlestick charts pack a lot of information into a compact form, which is why they are widely used. For beginners, simply understanding what each candle represents is enough to start reading charts without being misled by more advanced interpretations.
Frequently Asked Questions
What do the wicks on a candlestick mean?
The thin lines above and below the candle body show the highest and lowest prices reached during that period, while the body shows the opening and closing prices.
What do candlestick colours mean?
Colours typically show whether the price rose or fell over the period, letting you scan the general direction of a chart quickly. Exact colours can vary by platform.
