What information fits inside one red or green bar on a chart? A candle shows where the price started and ended over a period and how far it moved. Learn to read a single candle before memorizing patterns.
Four prices in one candle
- Open: The first traded price in the period.
- Close: The last traded price in the period. The close of an unfinished candle keeps changing.
- High: The highest traded price in the period.
- Low: The lowest traded price in the period.
The thick part between the open and close is the body; the lines above and below it are wicks. A long body means a large difference between open and close. Long wicks show that trades occurred beyond the body's price range.
Does red mean up or down?
It depends on the exchange and chart settings. Korean services may use red for an increase, while an international chart may use green. Check the open and close rather than relying on color alone.
Suppose a hypothetical one-hour candle opens at ₩100, reaches a high of ₩112 and a low of ₩97, and closes at ₩108. Its body spans ₩100–108, upper wick ₩108–112 and lower wick ₩97–100. Those four prices alone cannot tell you whether ₩112 or ₩97 was reached first.
Five-minute and daily candles cover different periods
One five-minute candle summarizes five minutes of trading; a daily candle summarizes a day. At the same moment, a five-minute candle may be down while the daily candle is up. Daily starting times can differ by exchange and time zone, so align the settings when comparing.
A single candle shape does not determine the next price. Consider volume, order books and news too, and avoid treating an unfinished candle as a completed pattern. The prices in this article are hypothetical figures used to explain chart structure.
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