How to read a candle stick chart

A candlestick chart is a chart that represents a tokens price movement.

 

Here is an example of a candlestick chart:

 

 

Candlestick charts consist of multiple red and green "candlesticks".

 

Each candlestick represents a specific time frame (i.e. 1 minute, 1 hour, 1 day) depending on the chart.

 

 

A green candlestick:

  • Represents a positive price movement.

  • These may occur when liquidity is provided.

  • These may also occur when swappers are buying more than they are selling.

 

A red candlestick:

  • Represents a negative price movement.

  • These may occur when liquidity is removed.

  • These may also occur when swappers are selling more than they are buying.

 

 

Each candlestick is made of a body, an upper wick, and a lower wick.

 

The body is the rectangular part of the candlestick.

  • The body represents the price range between the opening and closing prices during the specified time period.

The wicks are the thin lines extending above and below the body.

  • The upper wick represents the high price during that specified time frame.

  • The lower wick represents the low price during that specified time frame.

 

Wicks show how much the price changed during a specified time frame.

 

 

Using these definitions you read a candlestick chart to see the changes in a tokens price.

 

To see our candlestick charts see the following sites:

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