Candlestick charts: a clearer way to read price
Learn what open, high, low and close mean, and how a chart changes when you choose a different timeframe.
A candlestick summarizes prices over a selected interval. Its body connects the open and close; the wick shows the high and low. Together they describe what happened within that bar, without showing every individual trade or quote.
Four prices, one interval
Open is the starting price for the interval. High and low are the extremes observed during it, while close is the latest price for a completed bar. A candle still in progress can change shape as new observations arrive. The final shape is only known when the interval closes.
Timeframes change the view
A one-minute chart emphasizes short-term changes. An hourly chart combines more observations into each bar. Neither is a more complete prediction: they are different summaries of the same market. Compare timeframes carefully, because a large move on a small interval may be a minor part of a longer trend.
Read the chart's context
- Check which instrument and price feed the chart uses.
- Note whether the last candle is still forming.
- Check the scale before judging how large a movement is.
- Remember that chart colours are display conventions, not trading instructions.
Price feeds can differ between venues, especially in decentralized markets. Gaps and quiet intervals can also reflect market hours or missing observations. A chart is a useful record of prices, but a candle pattern alone cannot establish what comes next.