Easy way to read candlesticks or chart

Understanding Candlesticks: The Basics for Reading Market Charts

A candlestick, or chart, is one of the essential tools used to analyze short-term market price movements. Candlestick charts generally appear in two colors—red and green. To help you understand the basics of chart reading, please review the explanation below.

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1. Candlesticks Contain 4 Key Data Points

Open – The opening price during the selected time period.

Low – The lowest trading price during that period.

High – The highest trading price reached.

Close – The closing price at the end of the period.

These four data points form the shape and structure of every candlestick.

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2. Candlestick Colors

Candlestick colors help identify price direction:

Green Candle – The price is increasing (Close Open).

Red Candle – The price is decreasing (Close

Understanding these colors is important because candlestick movement is one of the main indicators used to predict future market behavior.

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3. Candle Body Size (Price Movement Strength)

The size of the candle represents the strength of the price movement:

• Larger candles indicate strong buying or selling pressure, meaning one side is dominating the market.

• Smaller candles suggest indecision—neither buyers nor sellers are able to control the price significantly.

This helps traders evaluate the momentum and strength behind market movements.

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We hope this basic explanation of candlesticks helps you understand charts better! If you have further questions, feel free to contact our Customer Support team through Live Chat.