Reading Open, High, Low, and Close

Every candlestick has four essential prices: open, high, low, and close. The open is where trading began for that period. The close is where it ended — and in manual trading, the close often matters most because it shows who held control when the period finished.

The high and low show the full range of the auction. A long upper wick means price was pushed up but sellers rejected those levels before the close. A long lower wick means sellers drove price down but buyers reclaimed ground. The body shows the distance between open and close; a large body signals decisive movement, a small body signals hesitation.

Bullish candles typically close above the open (often colored green or white). Bearish candles close below the open (often red or black). On any platform, learn how to toggle colors and ensure wicks are visible — you cannot read rejection without seeing the full range.

Compare consecutive candles rather than reading each in isolation. A bearish candle after three strong bullish candles may simply be profit-taking, not a reversal. Look at where the close sits relative to the prior candle's range: closing above the previous high is a sign of continuation; closing below the previous low is a sign of weakness.

On higher timeframes, each candle compresses hours or days of behavior. On lower timeframes, each candle is a snapshot of minutes. Always know which timeframe you are reading — the same wick pattern means different things on a 1-minute chart versus a daily chart.