How to read Candlestick Charts

What are Candlestick Charts?

Candlesticks are illustrations of chart data for many different time frames packed into single rectangular price bars. While this is confusing at first it is easy to understand once you break down what makes up each candle stick and how to use this information. 

Candlestick Characteristics 

A candlestick is at its most basic form red or green in color indicating a negative price movement or positive price movement within that time. For example, one red candlestick represents a move down from the open to the close of that candle.

The next characteristic of a candlestick is the long lines that stick out of the candle’s body on either end. These are called “wicks.” Wicks represent the highest and lowest price within the time frame the candle represents. The upper wick is the highest price while the lower wick represents the lowest price.

Final Review of Candlesticks

Below is an illustration that is key to understanding candles sticks that are both bullish and bearish in nature. The arrows represent the direction the stock moved within that time frame.


Candlestick charts are the most commonly used charts that traders and investors use to get loads of information about a stock within a specific time. They are the most fundamental and basic things to understand when starting your technical analysis study! 

Your Fellow Stock Hackers

Erwin and Cherry 

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That’s all for now.

Happy trading and investing,

Your fellow Stock Hackers,

🍒Cherry & Erwin

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