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How to read a candlestick chart

In one line: Body, wicks, colours and timeframes, step by step.

Step 1: pick the Timeframe. Each candle is one period.

Step 2: find the body: from open to close. Up candles and down candles usually have different colours.

Step 3: look at the wicks: the highest and lowest prices in that period.

Step 4: zoom out. One candle is a sentence; a chart is a story. Just remember that stories are easy to make up afterwards: Confirmation bias on charts.

Related

Sources & studies

  1. Investopedia (secondary): Candlestick

GuidesCandlestickTimeframe

Last checked: 2026-11-04 · Educational, not financial advice.

Education only, not financial advice. No signals. Backtests are hypothetical: real trading can be worse. Past results don't predict future results.