How to Read a Crypto Candlestick Chart
A crypto candlestick shows open, high, low, and close for one period. Read the body, wicks, color, and volume bar; colors can vary by exchange.
Vahe HakobyanEditor-in-chief
Updated Oct 6, 20264 min readFact-checked
On this page
- The body runs from the open to the close.
- Thin wicks mark the period's high and low.
- Color compares the close with the open, not the prior candle.
- Volume bars show how much traded in each period.
- Daily candles may not match a US calendar day.
A candle is a compact record of price movement. Once you know its parts, you can scan a chart and see what happened in each period.
What do you need before you start?
A candlestick chart tracks one crypto pair over a time frame you choose. The pair is the market you watch, such as BTC/USDT. The time frame sets how long each candle lasts, from one minute to one day or longer.
How do you read a candlestick chart?
Every candle is a compact record of one time period. You can read it by looking at its parts in order. The same four prices appear whether you view a one minute candle or a one day candle.
- 1Pick a candle and periodEach candle shows the open, high, low, and close for one time period, such as one hour. The time frame you set on the chart decides that period.
- 2Read the bodyThe thick body runs from the open to the close. That range is the core of the period's price action.
- 3Check the wicksThin wicks above and below the body mark the period's high and low. They show where price moved beyond the open and close.
- 4Look at the colorThe color tells you whether the close was above or below the open. Many exchanges use green for a close above the open and red for a close below, but colors can differ or be changed.
- 5Read the volume barA bar under the candle shows how much crypto traded during that same period. A taller bar means more trading activity.
What should you do after reading?
Reading charts takes practice, and a live exchange chart is a good place to practice. Open a chart for a pair you follow and study the candles without trading. When you create an account, turn on two-factor authentication to protect it.
Frequently asked questions
A doji has an open and close that are nearly equal, so its body is very thin or absent. It shows that price moved up and down during the period but ended close to where it started.
Choose the BTC/USDT chart and set the time frame you want. Then read each candle the same way: body for open and close, wicks for high and low, color for direction, and volume bar for activity.
No. Candlestick patterns describe price action that already happened. They can help you see how buyers and sellers behaved, but they do not tell you what comes next.
Many exchange charts let you change candle colors and pick a time zone. Look in the chart settings for options such as color scheme and time zone.
