Candlestick Chart Beginner

Each candlestick represents one fixed period of time, such as one minute, one hour, or one day, depending on the chart's settings. The thick part of the candle, called the body, shows the range between the opening and closing price for that period. Thin lines extending above and below the body, called wicks or shadows, mark the highest and lowest prices reached during that same period. The candle is usually shaded one colour, often green, if the price closed higher than it opened, and another colour, often red, if it closed lower, though exact colours can vary between platforms.

Candlestick charts are widely used across crypto trading platforms because they pack more information into one view than a simple line chart, making it easier to see volatility and the balance between buying and selling pressure within each period. Traders often look at sequences of candles to identify patterns, but recognising a pattern doesn't guarantee how price will move next; past patterns reflect historical price action, not a forecast. Reading a candlestick chart is a descriptive skill for understanding what already happened to price, and shouldn't be treated as a reliable prediction of future movement. This isn't financial advice. Candlestick charts are typically shown alongside trading volume and other indicators, since price movement on its own tells only part of the story behind an asset's activity over a given period.