What You Will Learn
By the end of this section, you will be able to:
- Understand what Open, High, Low, and Close (OHLC) mean and why they matter
- Explain how timeframes change what each candle represents
- Read the exact price values from any candlestick on your chart
- Identify the candle body, wicks, and color, and know what each tells you about price movement
- Use TradingView's tools to get precise price readings from any candle
Introduction
Welcome back!
Now that you have your TradingView account set up and you know how to open charts, let's make sure you can actually read what you're looking at.
In Chapter 2, you learned about candlesticks in theory. Now, we're going to apply that knowledge directly to your TradingView chart. This is where the rubber meets the road.
Because every trading decision you make—whether to buy, sell, wait, or exit—starts with reading a candlestick correctly. If you can't read the candles, you can't understand what the market is telling you.
The good news? Once you practice this a few times, reading candlesticks becomes second nature. It's like reading a clock—at first it takes effort, but eventually you just see the time without thinking about it.
Let's dive in.
Topic 2.1: Understanding OHLC (Open, High, Low, Close)
What Each Component of OHLC Represents
Every single candlestick on your chart shows you four pieces of information. Together, these are called OHLC:
Imagine you're watching a basketball game. The game lasts 4 quarters (let's say that's your "time period").
That's OHLC. It's the story of what happened during that time period, told in four numbers.
Candlestick Anatomy: Bullish vs Bearish
How Timeframes Affect What Each Candle Shows
Here's something really important to understand:
The same chart can look completely different depending on the timeframe you choose.
A timeframe is the length of time that each candle represents. TradingView gives you many options:
Each candle = 1 minute of price action
Each candle = 5 minutes
Each candle = 15 minutes
Each candle = 1 hour
Each candle = 4 hours
Each candle = 1 full trading day
Each candle = 1 week
Each candle = 1 month
Because the OHLC values change based on the timeframe you're looking at. Same asset, same market, but completely different information depending on the timeframe.
On a 1-hour chart: One candle shows what happened in Bitcoin's price over the last hour.
On a daily chart: One candle shows what happened over the entire day.
How to change the timeframe in TradingView:
Look at the top toolbar, usually near the center. You'll see buttons with time labels: 1m, 5m, 15m, 1h, 4h, 1D, 1W, 1M
Click on any of these to change your chart's timeframe.
Focus on these timeframes:
- 1-hour (1h) – Good for seeing recent price movement without too much noise
- 4-hour (4h) – Shows bigger trends, less noise
- Daily (1D) – Shows the big picture, great for spotting major trends
Avoid very short timeframes like 1-minute or 5-minute charts at first—they're very noisy and can be overwhelming for beginners.
Reading the Actual Price Values from a Candlestick
Now let's learn how to see the exact OHLC numbers on your chart.
- Method 1: Hover your mouse over a candle Move your mouse cursor over any candlestick on your chart. A small tooltip box will appear showing you O, H, L, C values and the time/date of that candle. This is the easiest way to get precise readings.
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Method 2: Look at the top-left corner of your chart
As you move your cursor across the chart, the top-left area shows the OHLC values for whichever candle your cursor is on. You'll see something like:
O: 43,250.00 H: 43,580.00 L: 43,100.00 C: 43,420.00. These numbers update in real-time as you move your cursor. -
Method 3: Use the crosshair tool
Look for a + (plus sign) icon in the left toolbar. Click it, or press the
+key on your keyboard. Your cursor turns into a crosshair. Click and drag it across candles to see precise OHLC data. This is especially useful when you want to measure the distance between two price points.
- Open your EURUSD chart (or any forex pair)
- Set the timeframe to 1 hour (1h)
- Hover your mouse over any candle
- Look at the tooltip or the top-left corner
- Write down (or just observe) the O, H, L, and C values
Do this a few times with different candles. Get comfortable reading the numbers.
Topic 2.2: Candle Anatomy – Body, Wicks, and Color
Now let's break down the visual parts of a candlestick and what they tell you.
What the Candle Body Tells You
The body of the candle is the thick, colored rectangle in the middle.
The body shows the range between the Open and the Close.
- If the Close is higher than the Open, the body is usually green (or white, depending on your theme). This is a bullish candle (buyers won).
- If the Close is lower than the Open, the body is usually red (or black). This is a bearish candle (sellers won).
What does the size of the body tell you?
Strong movement
Clear winner
Weak movement
Indecision
What the Wicks/Shadows Reveal
The wicks (also called shadows) are the thin lines above and below the body. They show you price rejection—where the market tried to go, but failed.
Color Coding: Green/White (Bullish) vs. Red/Black (Bearish)
Most traders use this color system:
Bullish Candle
- Close is above the Open
- Buyers won this round
- Price moved up
- Usually green or white
Bearish Candle
- Close is below the Open
- Sellers won this round
- Price moved down
- Usually red or black
Depending on your TradingView theme settings, you might see green/red, white/black, blue/orange, or any custom colors you set. It doesn't matter what colors you use, as long as you know which color means bullish and which means bearish.
To check or change your colors: Click the gear icon (Settings) in the top-right → Go to Appearance → Look for Candles settings → Choose your preferred colors.
How to Quickly Assess Price Movement from a Single Glance
Once you practice reading candles for a while, you'll be able to look at a chart and instantly understand what's happening.
Here's what to look for at a glance:
Green = buyers winning
Red = sellers winning
Long body = strong move
Short body = weak/indecision
Long upper wick = rejection higher
Long lower wick = rejection lower
Pattern recognition comes with practice—doji, hammer, etc.
Don't worry about memorizing all these patterns right now. Just know that every part of the candle is telling you a story about the battle between buyers and sellers. The more candles you look at, the faster you'll be able to read that story.
Topic 2.3: Micro-Task Practice
Alright, time to put your knowledge into action!
Hands-On Exercise: Reading a Candle on BTCUSD
Let's do a real exercise right now on your TradingView chart.
- Open the BTCUSD chart Use the symbol search bar (top-left), type BTCUSD or BTCUSDT, choose BINANCE:BTCUSDT if available, and make sure your chart is in candlestick view.
- Set the timeframe to 1 hour (1h) Click on the 1h button in the top toolbar. Now each candle represents 1 hour of Bitcoin price movement.
- Pick any completed candle Scroll back a little so you're not looking at the current (incomplete) candle. Pick any candle that's fully formed (not the one on the far right edge, which is still forming).
- Hover your mouse over that candle Move your cursor directly over the candle you chose. A tooltip should appear with OHLC data.
- Record the values Write down (in your notes, on paper, or just mentally): Open, High, Low, Close, Candle color (green/red), and Time/Date.
- Analyze what you see Ask yourself: Is this bullish or bearish? How big is the body? Are there long wicks? What's the story of this candle?
Do this exercise with 3-5 different candles. The more you practice, the faster you'll get at reading them.
Understanding How to Use TradingView's Cursor Tooltip for Precise Readings
As you just practiced, the tooltip is your best friend for getting exact prices. Here are some extra tips for using it effectively:
- Tip 1: The tooltip only shows data for the candle you're hovering over. If you move your mouse even slightly off the candle, the tooltip might disappear. Keep your cursor steady.
- Tip 2: You can see data in the top-left corner instead. If the tooltip is hard to read or keeps disappearing, just look at the top-left of your chart.
- Tip 3: Use the crosshair for more precision. Press the
+key on your keyboard. This locks your cursor into crosshair mode. - Tip 4: Zoom in for tiny candles. If the candles are really small and hard to click on, use your mouse scroll wheel to zoom in.
- Tip 5: The current (rightmost) candle is incomplete. For practice, always use completed candles (the ones before the current one).
Quick Summary
Let's recap what you just learned:
- OHLC stands for Open, High, Low, Close – These four values tell you everything that happened during a candle's time period.
- Timeframes change what each candle represents – A 1-hour candle shows 1 hour of price action; a daily candle shows a full day.
- The body shows the Open-to-Close range – A long body means strong movement; a short body means weak or indecisive movement.
- Wicks show rejection – Long upper wicks = sellers rejected higher prices. Long lower wicks = buyers rejected lower prices.
- Green (or white) = bullish, Red (or black) = bearish – This color coding instantly tells you who won: buyers or sellers.
- You can read exact prices using TradingView's tooltip – Hover over any candle to see its OHLC values.
Common Mistakes & Tips
Practice Activity (5-10 minutes)
Before moving on, complete this quick practice:
- Open EURUSD on a 1-hour chart
- Find a green (bullish) candle and record its OHLC values
- Find a red (bearish) candle and record its OHLC values
- Find a candle with a long lower wick → Ask yourself: What does this tell me?
- Change the timeframe to Daily (1D) → Pick any candle and record its OHLC
- Switch to BTCUSDT on a 4-hour chart → Find the most recent completed candle
Bonus Challenge: Find a candle that looks like a "doji" (tiny body with long wicks on both sides). What does this tell you about the market? (Answer: Indecision—buyers and sellers were evenly matched)
Reflection Questions
Take a moment to think about (or write down) your answers:
- How confident do you feel reading a candlestick now? (If you still feel unsure, that's okay—it takes practice!)
- What part of OHLC makes the most sense to you? (Open, High, Low, or Close?)
- Why do you think the Close price is often considered the most important? (Hint: It shows where the final "battle" between buyers and sellers ended.)
- What does a long lower wick tell you about buyer strength? (It tells you buyers stepped in and defended lower prices.)
What's Next?
Excellent work! You now know how to read candlesticks like a pro.
In the next section, you're going to learn how to add technical indicators to your chart. We'll start with Simple Moving Averages (SMA) and Exponential Moving Averages (EMA)—two of the most popular and useful tools in trading.
These indicators will help you see trends more clearly and give you clues about when the market might be changing direction.
Remember: Reading candlesticks is a skill that improves with practice. The first 10 times might feel slow, but by the time you've looked at 50 or 100 candles, you'll be reading them instantly without even thinking about it.
You're building the foundation of real trading skills. Keep going—you're doing great!
Everything you're learning is for educational purposes only. Reading candlesticks and using technical indicators does not guarantee profits. Trading forex and crypto involves significant risk, and losses can exceed deposits.
Never trade with real money until you've practiced extensively in demo accounts. Always use proper risk management, and consult with a licensed financial professional in your country before making any real trading decisions.
Stay disciplined, stay patient, and keep learning!