LESSON 9 OF 16 · 2 MIN
Candlestick charts
IN SHORTEach candle shows a period's open, high, low and close. Its body and wicks tell you who was in control: buyers or sellers.
A candlestick shows four prices for a period such as a day: the open, the highest, the lowest and the close.
- Body: from open to close. Usually green (or hollow) if the price closed higher, red if lower.
- Wicks: the thin lines above and below, showing the high and the low.
- A long lower wick: sellers pushed the price down but buyers pushed it back.
- A long upper wick: buyers tried, but sellers pushed it back down.
KEY POINTOne candle is noise. Read candles in groups, together with volume and the news that day.
Change the period to see the bigger picture: daily candles for weeks, weekly candles for months and years.
Try it: Open a chart and switch between ranges.
Open a chartEducation only. TradingFloor AI does not give investment advice. Prices can fall as well as rise and you may get back less than you invest.