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Candlestick charts are one of the two most popular trading charts, because of the range of trading information that they represent, and their further of reading and translation.

Candlestick charts consist of a wide vertical line, and a narrow vertical line. Each candlestick includes the open, high, low, and silent, of the timeframe, and also shows the direction (upward or declining), and the range of the timeframe.

Candlestick charts are read and interpreted during trading as follows (take in full size chart):

Difficulty: EasyTime Required: 5 MinutesHere’s How:

1. Open – The open is the first price traded during the candlestick, and is indicated by either the top or bottom of the deviating vertical line (the bottom for an upward candlestick, and the top for a downward candlestick). In the example chart, the upward candlesticks are colored green, and the downward candlesticks are colored red.
2. High – The high is the highest valuation traded during the candlestick, and is indicated by the top-notch of the thin vertical bar (the wick of the candlestick).
3. Low – The low is the lowest price traded during the candlestick, and is indicated by the bottom of the thin vertical bar (the upside down wick of the candlestick).
4. Close – The agree is the last price traded during the candlestick, and is indicated by either the top or bottom of the wide vertical line (the top for an upward candlestick, and the origin for a downward candlestick). In the example chart, the upward candlesticks are colored green, and the downward candlesticks are colored red.
5. Direction – The direction of the candlestick is indicated by the color of the candlestick (specifically the wide vertical line). Usually, if the candlestick is grassy, the candlestick is an upward candlestick, and if the candlestick is red, the candlestick is a downward candlestick, but these colors can usually be customized. In the example tabulation, the upward candlesticks are colored green, and the declining candlesticks are colored red.
6. Range – The range of the candlestick is indicated by the locations of the top and bottom of the skimpy vertical line (the wicks). The range is calculated by subtracting the low from the high (Range = High – Low).

More How To’s from your Guide To Day Trading