Candlestick basics

Candlesticks provide a visually intuitive way to understand price action. Each candlestick represents a specific period of time, such as 1 day, 1 hour or 5 minutes. Candlesticks come in many different forms, but they all have 4 stats in common: an open price, high price, low price, and close price.

The thick body of the candlestick shows the difference between the open price and the close price. If the body is green, the closing price was higher than the opening price. A red body means the closing price was lower than the opening. Thin lines extending above and below the body, known as wicks, indicate the high and low prices reached during that time period.

Candlesticks can help identify possible trend reversals, support and resistance levels, and areas of indecision.

Reshape the candle to see how each price moves the body and wicks, then press Watch it form to see the path price takes inside one period.