The Trading Environment
Module 15 — Basic Chart Reading
A candlestick summarises a period of trading in four numbers: open, high, low and close. The body spans open to close; the wicks show the extremes price reached and was rejected from.
Illustrative example
The timeframe you choose changes what you see, not what the market is. The monthly chart and the five-minute chart describe the same price. Higher timeframes carry more weight because more participants transacted to form them — a principle used throughout the InstaSwich methodology.
Key concepts
- Candles show open, high, low, and close
- Timeframes change detail
- Higher timeframes provide broader context
Practical example
A long lower wick shows price traded lower before closing back up; it does not prove the next candle will rise.
Common mistake
Treating one candle as a complete trading signal.
Knowledge check
Check your understanding
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