Reading candlestick charts
Each shows four prices for a period: Open, High, Low, and Close. The "body" is the range between open and close. A green () candle closes higher than it opens; a red () candle closes lower. The thin "wicks" show the high and low extremes.
Candlesticks pack four data points into one visual symbol.
Trends and trend lines
An has higher highs and higher lows — buyers are in control. A has lower highs and lower lows — sellers dominate. Drawing a through at least two swing lows (uptrend) or swing highs (downtrend) helps visualize direction.
Support and resistance
is a price level where a has historically bounced upward — buyers step in near that price. is a ceiling where sellers historically appear. Breakouts above resistance or breakdowns below support often signal significant changes.
Volume confirms moves
Price moves with are more significant than low-volume moves. A on high volume suggests strong conviction; a move on low volume may quickly reverse. Volume is the "second opinion" for any you see on a chart.
High volume validates price moves. Low volume questions them.