Articles · 4 November 2026 · 3 min read

How to Read a Candlestick

Learn it once. Understand it forever.

A candlestick looks like a small coloured box with lines above and below it. Once you know what it shows, every chart starts to read like a story of buyers against sellers.

Four prices in one shape

Each candle covers one period of time, such as one hour or one day, and records four prices:

• Open: where price started the period.
• Close: where price ended the period.
• High: the highest price reached.
• Low: the lowest price reached.

The body: who won

The thick part between the open and the close is the body. If the close is above the open, the candle is usually green: buyers pushed price up. If the close is below the open, it is usually red: sellers pushed price down. A big body means one side was clearly in control. A tiny body means neither side won.

The wicks: what was rejected

The thin lines are the wicks. They show where price travelled but could not stay. A long wick on top means price went up and was pushed back down. A long wick underneath means price dropped and was pushed back up.

Why the close matters most

During the period, price can move anywhere. The close is where buyers and sellers finally agreed. That is why traders wait for a candle to close before reading it, instead of reacting to every move inside it.

Educational content only — not financial advice. A single candle is never a reason to trade on its own; it always needs context such as trend and key levels.

Watch the full lesson on our YouTube channel.