Visual investing lesson
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
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?