If you have ever opened a trading chart and felt like you were staring at a wall of random red and green bars, you are not alone. I remember the first time I looked at a candlestick chart. It looked like some kind of secret code that everyone else understood except me. Turns out, it is not a secret code at all. Once you learn what each candle is actually showing you, the whole chart starts to make sense. So let us break it down piece by piece, the way I wish someone had explained it to me when I was starting out. What Is a Candlestick, Really? A candlestick is just a visual snapshot of price movement during a specific period of time. That period could be one minute, one hour, one day, or even one week, depending on the timeframe you are looking at. Every single candle is telling you four things: 1. Open – the price when that time period started 2. Close – the price when that time period ended 3. High – the highest price reached during that period 4. ...
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