How to Read Candlesticks and Volume Bars on Binance Charts?

Open a trading page on Binance and the most prominent thing you'll see is a chart filled with red and green "candles." Many beginners feel intimidated, but the basics are actually not hard to understand.

What Is a Candlestick?

After entering any trading pair's page through the Binance official site, you'll see the candlestick chart. Each "candle" represents price movement over a specific time period, containing four key prices. For a better view, download the APK and view the chart in landscape mode on your phone.

Each candlestick contains:

• Open price: The price at the start of the period
• Close price: The price at the end of the period
• High price: The highest traded price during the period
• Low price: The lowest traded price during the period

Green (or white) candle: The close price is higher than the open, meaning the price went up. Red (or black) candle: The close price is lower than the open, meaning the price went down.

The "body" (thick part) represents the range between open and close. The thin lines extending above and below are "wicks" -- the upper wick reaches the high, and the lower wick reaches the low.

Basic Candlestick Patterns

• Large green candle (bullish): Strong buying pressure, significant price increase.
• Large red candle (bearish): Strong selling pressure, significant price decrease.
• Doji (very small body): Buyers and sellers are evenly matched, and the market may be about to change direction.
• Long lower wick: Price dropped significantly but was pulled back up, indicating support below.
• Long upper wick: Price rose significantly but was pushed back down, indicating resistance above.

How to Read Volume Bars

The bar chart below the candlesticks represents volume. Each bar corresponds to the candle above it, showing the total trading volume during that period.

Key things to look for:

• Price up + volume up: Price is rising with increasing volume, indicating the rally is backed by real buying interest -- a more reliable trend.
• Price up + volume down (divergence): Price is making new highs but volume is shrinking, suggesting the rally is losing steam and a correction may be coming.
• Heavy volume on a drop: Price is falling with a spike in volume, indicating heavy selling pressure -- further decline is likely in the short term.
• Low volume consolidation: Price fluctuates in a narrow range with very low volume, meaning the market is waiting and undecided on direction.

Choosing Time Frames

Binance charts let you switch between different time periods: 1 minute, 5 minutes, 1 hour, 4 hours, 1 day, and more.

• Short-term trading: Use 1-hour or 4-hour candles
• Medium to long-term investing: Use daily or weekly candles
• Beginners should start with daily candles -- less noise from short-term fluctuations to cloud your judgment

Tips

Don't try to learn too many complex technical indicators right away. Start by understanding candlesticks and volume -- they're the foundation of all technical analysis. Master these two, and everything else will come much more easily.