MCMOOR CAPITALKnowledge · Capital · LegacyUPGRADE
← Beginner Stock Investor

Lesson 3 of 6 · 9 min

Reading a price chart

Candlesticks show where price opened, closed, and how far it travelled.

Each candlestick represents one period — a day, an hour, a week. The thick body spans the open and close; the thin wicks show the high and low.

A green (or hollow) candle closed higher than it opened. A red (or filled) candle closed lower. A long wick shows price was pushed far one way and then rejected.

Charts describe the past. They help you understand volatility and context, but no pattern reliably predicts the future.

Diagram

HighLowEach candle = one day
Body = open to close. Wicks = high and low.

Trade example · MSFT (Microsoft)

Reading one trading day

An investor reviews a single daily candle.

Open
$410.00
High
$418.50
Low
$407.20
Close
$416.00 (green candle, +1.5%)

Buyers controlled most of the day, though price pulled back slightly from the high before the close.

Use charts for context — never as a guarantee of tomorrow's move.

Prices are rounded examples for teaching, not live quotes or recommendations to buy or sell.

Key takeaways

  • Candles show open, high, low and close.
  • Green closed up, red closed down.
  • Past patterns don't guarantee future results.

Knowledge check

What does the thin wick above a candle show?

NEXT: ORDER TYPES: MARKET, LIMIT AND STOP
Consult a professionalInvesting involves risk, including loss of principal. Consider speaking with a licensed financial professional before investing.

DisclaimerMoor Capital provides financial education and informational tools. Content is not individualized investment, legal, tax, credit-repair, or financial advice. Investing involves risk, including possible loss of principal.