It is quite easy to read a candlestick. A candlestick contains a lot more information than a normal price line.
Open: the opening price
High: the highest point within the relevant period
Low: the lowest point within the relevant period
Close: the closing price
You can see from the colour of a candlestick whether the price has gone up or down. Green bars indicate that the price has risen and red bars that the price has dropped.
A candlestick refers to the price development in a certain period. The period to which the bar relates depends on the period in which you are analysing the graph. For example, one candlestick can relate to an hour or a day.
The shadow of the candle indicates the price range within that period: this is also called the shadow of the candle. The body is the thick part of the candlestick and indicates the opening price and closing price of the period.
A positive green bar always opens in the lower part of the body and closes in the higher part of the body. A negative red bar always opens in the higher part of the body and closes in the lower part of the body. To get more information visit #candlesticks explanation.
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