Candlestick charts are one of the most commonly used tools in financial trading and technical analysis. Stock, forex and day traders use these charts daily to follow assets and profit from their behavior. Learn how to read candlestick charts and what they mean.

1. Binary Options
Candlestick Charts & Patterns
By the experts at TradeOpus.com

2. What are Candlesticks?
Candlestick charts are an analysis tool used by
financial traders to give insight into an asset’s
behavior over a certain time.
They visually represent different details about each
asset in an effective, simple graphic way.
As such, a lot of information can quickly and easily
be interpreted by a trader and decisions made.
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3. History of Candlestick Charts
Candlesticks were created by Sokyu Honma, a
Japanese rice trader, hundreds of years ago.
Since then, they have acquired such an
impressive reputation as a powerful analytical
tool; they are still widely used by binary options
traders today.
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4. How To Read Them
Each candlestick is represented by 4 price points:
• Closing price
• Highest price
“Body”
• Opening price
• Lowest price HIGH
The distance between the
closing and opening values is
defined as the ‘body’. LOW
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5. How To Read Them
When the closing value is higher than the opening
price, then the candlestick is bullish (going up) and
its body normally has a white (or green) color.
Alternatively, a bearish (going down) candlestick is
formed whenever the opening price is above the
closing value. This is usually black (or red).
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6. How To Read Them
The distance separating the highest price and
closing price of a bullish candlestick (or highest
price and open for bearish) is known as the ‘wick’.
In addition, the distance separating the lowest
value and opening value (bullish) and lowest price
and close (bearish) is referred to as the ‘tail’.
In simple English….
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7. How To Read Them
The top part of the candlestick (above the body)
is the “wick”.
“Wick”
The bottom part
(below the body) is
the “tail”.
“Tail”
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