How to read candlestick charts: open, high, low and close
A candlestick summarises four prices for a chosen interval: open, high, low and close. Its body connects open and close; its wicks extend to the high and low. Colours depend on the platform, so check its settings before treating green as a precise definition.
Read the numbers first
In a hypothetical daily candle, a share opens at $50, reaches $53, falls to $49 and closes at $52. The body spans $50 to $52. The upper wick reaches $53 and the lower wick $49. The candle records a $4 range and a $2 gain from the open.
Those four values do not reveal whether the high occurred before the low. Two very different intraday paths can produce the same daily candle. Volume and lower-timeframe data add information, though they still do not identify every participant’s intention.
Three checks before interpreting a shape
Confirm the interval. A weekly candle combines multiple sessions; an hourly candle covers a smaller period. Confirm whether the chart includes extended hours. Finally, check whether prices are adjusted for splits or distributions. A change in data treatment can look like a market event.
A consistent TC2000 chart layout helps comparisons: use the same interval, adjustment basis and scale for the names you examine. Changing all three while comparing two charts makes visual conclusions unreliable.
Try reconstructing the sample candle on paper. Then draw two possible intraday paths that generate it. You will see why a shape alone cannot establish a future return. Treat pattern names as descriptions to test, rather than explanations of what investors must do next.
| Open | High | Low | Close |
|---|---|---|---|
| $50 | $53 | $49 | $52 |