Chart Academy | Lesson 02: Understanding Candlestick Charts

Understanding Candlestick Charts

Welcome back to Chart Academy!

Today, we're learning how to read candlestick charts, one of the most important skills in technical analysis.

A candlestick tells us four important things about price:

• Where price opened.
• How high it went.
• How low it went.
• Where it closed.

But how do we interpret this information?

We've prepared the visual lesson above to help you understand the anatomy of a candlestick, bullish and bearish candles, different timeframes, and how candlesticks appear on real market charts.

Study the illustration carefully before attempting the exercise.

Your task is to answer the five questions in Section 7 of the illustration.

Share your answers in the comments and explain your reasoning.

Remember: We're not just learning to identify candles. We're learning to understand what price is communicating.

Next lesson: Understanding Market Timeframes and Multiple-Timeframe Analysis.

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