Learn how to read candlesticks.

Every candlestick summarizes four prices for a chosen period: open, high, low and close. The body shows the open-to-close range, and the wicks show the extremes. A green example means the close was above the open; red means below. Neither predicts the next move.

Interactive candle

Choose a fictional example

How to interpret responsibly

Open: the first transaction price in the period. Close: the last. High/low: the maximum and minimum transaction prices.

Time frame matters. A one-minute candle and a one-month candle summarize very different activity.

Context matters. Candles alone reveal little about a company's finances, costs, spreads or liquidity.

This diagram is an educational illustration, not a market quote or price prediction.

Try a knowledge check

A candlestick closes higher than it opens. Does that mean its price must rise next period?