Reading a Price Chart
Learn to read candlestick charts and understand timeframes
4 sections · 3 quiz questions · ~5 min read
Chart Types
The three main chart types are line charts (closing prices connected), bar charts (OHLC bars), and candlestick charts (the most popular). Candlesticks show the Open, High, Low, and Close of each time period at a glance.
Anatomy of a Candlestick
Each candle has a body (open to close) and wicks/shadows (high and low). A green/bullish candle closed higher than it opened. A red/bearish candle closed lower. Long wicks signal rejection of those price levels.
Timeframes
Charts can display different timeframes: M1, M5, M15 (scalping), H1, H4 (day trading), D1, W1 (swing trading). Higher timeframes show the bigger picture. Most traders use multiple timeframes for analysis.
Volume & Price Action
Price action is the study of price movement itself — no indicators needed. Watch for patterns in candle size, wick length, and momentum. High volume confirms moves. Low volume suggests weakness.
Quick check
Did it stick?
Try to answer each one before you peek at the explanation.
1
What does a long upper wick (shadow) on a candle indicate?
2
A green (bullish) candlestick means the price closed higher than it opened.
3
Match each timeframe to its typical trading style:
M5 - M15→Scalping
H1 - H4→Day Trading
D1 - W1→Swing Trading