Learn · Reading charts · 5 min read
Candlestick basics: how to read a candle
Most traders look at candlestick charts. Each candle shows what price did during one time period, like 1 hour or 1 day.
The 4 prices in every candle
- Open: price at the start of the period.
- Close: price at the end.
- High: the top of the upper wick.
- Low: the bottom of the lower wick.
Body and wicks
The thick part is the body, from open to close. On Pipzilla, green means price closed higher (bullish) and red means it closed lower (bearish). The thin lines are wicks (also called shadows). They show how far price went before getting pushed back.
What candle shapes hint at
- Big body, small wicks: one side was in control the whole time.
- Long lower wick: sellers pushed price down, but buyers pushed it back up.
- Long upper wick: buyers pushed up, but sellers pushed it back down.
- Tiny body: nobody won. The market is undecided.
Bullish vs. bearish
Bullish means price is going up or likely to. Bearish means price is going down or likely to. You'll see these words on every pattern in this section.
Key takeaways
- Each candle shows open, high, low and close.
- Green = closed higher (bullish). Red = closed lower (bearish).
- Long wicks show where price was rejected.
For learning only, not financial advice. Trading on margin is high risk.