How to read a candlestick chart

The candlestick chart is a very important tool you’ll need to learn to use.

Candlestick charts visualize the market performance of a given asset, divided by selected periods of time. For example, D1 chart (shown on the screenshot) shows this information divided by 24 hour periods. Using four main metrics, the “open,” “high,” “low” and “close,” candlestick charts display an asset’s price activity. 


  • “open” and “close” metrics show the asset price at the beginning and the end of a period;
  • “high” and “low” metrics mark the maximum and minimum price levels reached by the asset during the period.

With the form of a candlestick in mind, you can see that the two ends of the wick represent the highs and the lows, while the body of the candle is shaped by the opening and closing prices. A red candle signifies a net loss, while green signifies a net gain.

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