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YOVIDAI Investing Companion
beginner 3 min read

Candlestick charts — the honest version

Each candle summarises one period of trading in four numbers.

Every candle has an Open, High, Low and Close price. The rectangle body is the range between Open and Close; the thin lines above and below are the highs and lows reached during the period.

Green (or hollow) candle = Close > Open (price went up during the period). Red (or solid) candle = Close < Open.

A candle on the daily chart summarises one full trading day. On a 1-hour chart, one hour. On weekly, one week.

Reality check: candlestick 'patterns' work far less often than social media suggests. They're useful for describing what happened, not for reliably predicting what happens next.

Terms you'll see
  • WickThe thin line above or below the body, showing the intraday high or low.
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