Open any trading page, and the first thing that stands out is row after row of red and green candlesticks. They may look complicated, but each one records just a few simple numbers. Once you understand them, you can see how the price has moved.

Corresponding currency: $BTC quoted at 75,946.01 (24h -0.33%).

■ Four prices in a candlestick

Candlesticks are generally believed to have originated in Japan's rice markets, and were later widely used in stock, futures, and crypto markets. Each candlestick records four prices over a period of time: the opening price, highest price, lowest price, and closing price.

The thick part in the middle is called the body, and connects the opening and closing prices. The thin lines extending above and below are called wicks: the top of the upper wick marks the highest price during that period, and the bottom of the lower wick marks the lowest price.

■ Bullish and bearish candlesticks, and their colors

A candlestick is bullish when the closing price is higher than the opening price, and bearish when the closing price is lower. When the opening and closing prices are almost the same, the body shrinks to a horizontal line; this is often called a doji.

Pay special attention to the colors: Binance uses green by default to indicate a rise and red to indicate a fall, while stock-trading apps in China typically use red for rises and green for falls. You can change this in Binance’s settings, so check which color scheme you’re using before reading a chart.

■ Timeframes and trading volume

Candlesticks can be viewed across different timeframes, from 1-minute charts to daily and weekly charts. The longer the timeframe, the more trading a single candlestick encompasses. The same market movement can look completely different across timeframes.

The crypto market trades 24 hours a day. The “open” on a daily candlestick is simply a point in time determined by the time zone. Binance’s daily candlesticks default to UTC midnight, which is 8 a.m. Beijing time (depending on the chart’s time zone settings). The bars below the candlesticks usually show trading volume—how much was traded during each period.

■ How wicks are commonly interpreted

A long upper wick is often interpreted as showing that the price surged and then met selling pressure, pushing it back down. A long lower wick is often interpreted as showing that buyers stepped in when the price dipped. These are just descriptions of price movements that have already happened.

A single candlestick can’t tell you what will happen next. A more cautious approach is to look at longer timeframes and trading volume together, and remember: any pattern can fail.

■ A final note

Candlesticks record what happened; they don’t predict what will happen. They’re much more reliable as a tool for reviewing market movements than as a signal for guessing whether prices will rise or fall. If you don’t understand something, don’t trade a large position on it—practicing with a small amount is safer.

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For reference only; you are responsible for your own gains and losses.