Money Tree SchoolLevel 2 of 8
Sprout: Charts and candlesticks
What a chart is, what a candlestick is, who invented it, and how to read the story each candle tells.
- 1What is a price chart?A chart is a picture of price over time. There are three common ways to draw it.
- 2What is a candlestick?One candle squeezes a whole period of price moves into one little shape with four prices.
- 3The parts of a candleThe body, the wicks, and why some candles are green and some are red.
- 4Who invented candlesticks?Rice traders in Japan, almost 300 years ago, and how the idea reached the rest of the world.
- 5Timeframes: zooming in and outThe same price can be drawn as 1-minute candles or 1-day candles. Bigger candles are just smaller ones added up.
- 6The story inside each candleBig bodies, tiny bodies and long wicks each tell you who won the tug of war.
Next level: Roots, where price turns
Money Tree School is education, not financial advice. Examples use made-up or historical numbers to show how things work; they are not recommendations to buy or sell anything. Markets can lose money.