The four prices (OHLC)

Every time slice has four prices: the open, the high, the low and the close — OHLC for short. The open is the number of the period's first agreement and the close the number of its last; the high and the low are the extremes seen in between. A candlestick compresses these four numbers into one shape: a body between the open and the close, and wicks above and below. For a period that opens at 100, closes at 103, with a high of 104 and a low of 99.5, the body covers 100 to 103 and the wicks stretch to 104 and 99.5. Of the four, the close carries the most weight, because it is the period's final verdict — which is why so many readings in later levels rest on the close rather than on a wick. The common misreading is to assume the four numbers also describe what happened inside the period: they do not say which road price took between them, how many trades occurred or who was buying. The lesson for risk literacy: a summary describes the period, never its interior.

This content is educational information, not personalised investment advice. The chart examples are illustrative.

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