What is a Candlestick Chart?
When you open your MetaTrader 5 app, tap on “Charts”. And what you’ll see are little "rectangle bars" that go up and down. Those are "Candlesticks", and they tell you how the price moved over time.
How to Switch to Candlestick View in MetaTrader 5?
• Open the MetaTrader App
• Tap on “Charts”
• Tap the settings icon (top of the screen)
• Choose “Candlestick” instead of line chart or bar chart, and then you’ll see beautiful candles that show price movement clearly.
Each candlestick shows:
• Where the price opened
• Where the price closed
• The highest point
• The lowest point
Here’s the structure of a single candlestick:
• The Body = Shows the Open and Close price
• The Wicks (Shadows) = Show the Highest and Lowest price during that time
There are two types of candles:
1. Bullish Candle (Usually Green or White) This means the price went up. The bottom of the body is the opening, and the top is the closing.
2. Bearish Candle (Usually Red or Black) This means the price went down. The top of the body is the opening, and the bottom is the closing.
Timeframes:
What Does 1M, 5M, 15M Mean? In forex trading, each candlestick represents a specific period of time, for example:
1M = 1 minute, it means a Candle will Last for 1 minutes before another one appears after 1 minute, and that goes for all other Timeframes. If you select “1H,” every candlestick on the chart shows how price moved in 1 hour.
How to Use Candlesticks to Make Better Decisions?
Candlestick patterns help you decide when to buy and when to sell. Simple Signals for example:
• Long Green Candle, means strong buy momentum
• Long Red Candle, means strong sell momentum
• Small Body, Long Wicks means market is indecisive (wait, don’t trade yet)
These are the powerful Candlestick Patterns (For Later Use) We’ll cover these in more detail soon, but here are names to remember:
• Doji = Price opened and closed almost the same (signals reversal)
• Engulfing Candle = One candle “swallows” the other, represents a strong signal
• Hammer = Long lower wick with small body at the top, means prics might go up
• Shooting Star = Long upper wick with small body at the bottom, means price might go down
Why This Is Important
Understanding candlesticks will help you:
• Choose better entry points
• Spot market direction
• Avoid trading at the wrong time Remember, the market speaks through Price Action, and candlesticks are its language. If you can read this language, you’ll become a better trader.