What is a candlestick?
A single candlestick represents price movement over a given period. The Chart Settings section of MetaTrader 5 Help explains that OHLC displays the open, high, low and close.
What can 1 candlestick tell you?
From 1 candlestick, you read the relationship between the open, close, high and low.
What is the open?
The open is the price at the start of the period represented by that candle.
What is the close?
The close is the price at the end of the period represented by that candle.
What are the high and low?
The high is the highest price during that period; the low is the lowest price.
What is a bullish candle?
A bullish candle closes above its open. Colours vary with platform settings, so check the labels and relative positions.
What is a bearish candle?
A bearish candle closes below its open. Look at the relationship between the open and close, not only the colour.
What do the wicks show?
The wicks show how far prices extended to the high and low during the period.
Does the meaning change with the timeframe?
Yes. On a 1-minute chart, 1 candle represents a different period from 1 candle on a daily chart.
What should beginners focus on?
Begin with OHLC and the basics of bullish and bearish candles, without trying to memorise too many pattern names.
- Candlesticks represent the open, high, low and close.
- Read bullish and bearish candles from the relationship between the open and close.
- Use labels and positions, not colour alone.
- Changing the timeframe changes the period represented by 1 candle.
Summary
Candlesticks are a foundation for reading charts. Next, learn about market, limit and stop orders used when placing a trade.
Frequently asked questions
What does a candlestick represent?
It represents the open, close, high and low for a given period.
Does colour determine whether a candle is bullish or bearish?
Colour settings vary by platform, so check the relative positions of the open and close.
What does a long wick mean?
It shows a larger price extension toward the high or low during the period. Consider other information as well when making trading decisions.