Reading a Price Chart — Candles, Trends & Key Levels

Candlesticks

Each candle covers a fixed period (a minute, an hour, a day) and shows four prices: open, high, low and close.

A bullish candle (often green) closed higher than it opened. A bearish candle (often red) closed lower.

Trends

Uptrend: higher highs and higher lows.

Downtrend: lower highs and lower lows.

Range: price bounces between a ceiling and a floor without a clear direction.

Knowing which of the three a chart is in is one of the most useful basic skills.

Support & resistance

Support is a level where buying has repeatedly slowed or reversed a decline. Resistance is a level where selling has repeatedly capped a rise.

Think of them as a floor and a ceiling that price tends to react to — neither is guaranteed to hold.

Why this matters

Chart reading doesn't predict what happens next. It gives you a shared vocabulary for describing what the market is doing now, which your plan, stops and setups all rely on.