Register for Binance and learn to read charts for better trading decisions. Download the Binance APP to view charts on mobile. Candlestick charts are the most important tool for analyzing price movements. Our site explains the basics.
What Is a Candlestick Chart?
A candlestick chart displays price movement over time. Each "candle" shows four pieces of information for a given time period: Open, High, Low, and Close (OHLC).
Anatomy of a Candle
- Body: The thick part shows the range between open and close
- Upper wick/shadow: The thin line above shows the high
- Lower wick/shadow: The thin line below shows the low
- Green/Red: Green means price closed higher than it opened (bullish). Red means it closed lower (bearish).
Reading Candlestick Charts on Binance
Changing Timeframes
Tap the timeframe selector to switch between: 1m, 5m, 15m, 1h, 4h, 1D, 1W
- Short timeframes (1m-15m): For day trading
- Medium timeframes (1h-4h): For swing trading
- Long timeframes (1D-1W): For long-term trend analysis
Chart Types
Binance offers multiple chart types:
- Candlestick (default, most useful)
- Line chart (simple price trend)
- Bar chart (similar to candlestick)
Common Candlestick Patterns
Bullish Patterns (Price may rise)
- Hammer: Small body at top, long lower wick (buying pressure)
- Engulfing Bullish: Green candle completely engulfs previous red candle
- Morning Star: Three-candle reversal pattern at bottom
Bearish Patterns (Price may fall)
- Shooting Star: Small body at bottom, long upper wick (selling pressure)
- Engulfing Bearish: Red candle completely engulfs previous green candle
- Evening Star: Three-candle reversal pattern at top
Common Technical Indicators
Moving Averages (MA)
- Shows average price over a period
- MA(7), MA(25), MA(99) are commonly used
- Price above MA = bullish trend, below = bearish
Volume
- Bars at the bottom of the chart
- High volume confirms price movements
- Low volume may indicate weak trends
RSI (Relative Strength Index)
- Range: 0-100
- Above 70: Overbought (may drop)
- Below 30: Oversold (may rise)
MACD
- Shows momentum and trend direction
- MACD crossing above signal line = bullish
- MACD crossing below signal line = bearish
Candlestick Color Settings
On Binance, you can change the color scheme:
- Green up / Red down: International standard
- Red up / Green down: Asian standard
Find this in chart settings.
FAQ
Do candlestick patterns guarantee future prices?
No. They indicate probabilities, not certainties. Always use multiple indicators together.
Which timeframe should beginners use?
1-day charts for understanding overall trends. Add shorter timeframes as you gain experience.
How do I add indicators on Binance?
Tap the indicator icon on the chart page to add MA, RSI, MACD, Bollinger Bands, and more.
Is technical analysis necessary for trading?
Not required but very helpful. Even basic chart reading improves trading decisions.
Security Tips
- Do not trade based on a single indicator -- use multiple for confirmation
- Practice chart reading on historical data before trading
- Combine technical analysis with fundamental analysis
- Do not over-complicate -- master basics before advanced indicators
- Remember: past patterns do not guarantee future results
Register for Binance to access professional charting tools and start your trading analysis journey.