Level 1
Reading charts and candlesticks
By the end of this level you can open a price chart and put into your own words what each candle is telling you.
In this level
- What does a price chart show?A price chart is a record of trades that actually happened. The horizontal axis is time, the vertical axis is price. Every point you see is a moment when a buyer and a seller…
- Anatomy of a candleA candlestick condenses four prices from your chosen time slice into one shape: the open, the close, the high and the low. The thick part between open and close is the body; the…
- Bodies and wicks tell a storyThe length of the body shows how decisive the move of that period was. A long green body says price was carried firmly upward from open to close; a long red body is the same…
- TimeframesThe timeframe is how much time each candle summarises. On a daily chart every candle covers one day; on a 1-hour chart, one hour. A single daily candle is really twenty-four…