Does anyone have a 5 minute explanation or a good video that does so on how to read the candle graphs? It’s definitely one thing I have yet to do any sort of research on and the few videos I’ve watched have left me scratching my head lol
There's different kind of candles. If you're talking about standard candles people use for trading, then there's also different time frames. For example. For day trading, I primarily use the daily chart with the 3min candles. For every 3 minutes, it creates a single candle. If the candle is green, that means that particular candle is above the closing price of the previous candle. If it's red, it's under the closing price of the previous candle. The "wicks" that you see on a candle indicate how high or low the price range hit for that particular candle.
In the picture I uploaded shows what I'm talking about. The black candle (usually red by default but you can change colors) is the price of that particular time frame closing under the previous candle. Meaning the price is now lower than what it was "X" minutes ago (depending on what you set the candle at). The white candle in the image (usually green is default) is the opposite. The closing price in that time frame is above the previous candle.
As for the charts overall, it depends on how you plan on using them. Longer time frame will show you a bigger picture or pattern for a longer duration or an indication of where the stock may go. Example: the weekly chart or monthly chart will give a better understanding of where the stock will go (possibly) long term as opposed to short term. Looking to scalp, use the 1min candle or 3 minute candle. Day trade, I use the 3min and 5 min. Looking for a swing trade, 5min, 15min, 1hr, or even 1 day candles can help determine how long of a swing.
Also, when reading the chart, you also need other indicators. Trend line (I use the 9ema), vwap (volume weighted average price), 50ma (or 50sma), & 200ma (or sma). Looking for support and resistance can be a bit more intracant. But I also use the Fib retracement tool on day trades for possible pullbacks of support and resistance. Occasionally, I will use a different set up using Bollinger bands with a center line but that's something else entirely. Lol