FREE EXPLAINER · BEGINNER FOUNDATION
How to Read a Candlestick Chart
A candlestick shows the open, high, low and close for a chosen period.
The simple explanation
A candlestick shows the open, high, low and close for a chosen period.
Why it matters
It compresses price behaviour into a simple visual form.
A simple way to think about it
Read candles in context: trend, level, volume, volatility and timeframe. The same shape can mean different things in different locations.
A common beginner mistake
Treating one candle pattern as a prediction by itself.
What to check next
- Check that you understand the definition in plain English.
- Look at the company, market and timeframe rather than one number alone.
- Ask what could change the interpretation.
- Keep risk separate from excitement or certainty.
One calm takeaway
A candlestick shows the open, high, low and close for a chosen period. Use it as one piece of context, never as a promise about what happens next.