investing guide

How Do You Read Candlestick Charts When Trading Stocks

So how do you read candlestick charts when trading stocks?

Candlestick charts are probably the most advanced charts used by investors because they offer a lot of information.

The body of the candlestick represents the opening and closing stock prices for the day. The high and low stock prices are represented by the small wicks coming out of the top and bottom of the candle body. If the body of the candle is open or white it means the price ended higher than the open for the day. If the body of the candle is a solid color then the stock price closed below the open for the day.

As you learn more about using moving averages along with candlestick charts, you will find these charts to be very informational.

The chart below shows a common candlestick chart with moving averages.

candle stick chart with moving averages

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