How to Read Forex Candlesticks and Timeframes
Identify open, high, low and close in one completed candle.
Technical terms explained
Candlestick
A compact picture of price during one time interval. The body joins open and close; the wicks extend to the high and low.
OHLC
Four prices describing an interval: its first price, highest price, lowest price and last price.
Timeframe
The duration represented by one candle. M5 is five minutes, M15 fifteen minutes and H1 one hour.
An OHLC candle summarises prices in an interval. The body joins open and close; the wicks reach the high and low. A five-minute candle compresses five minutes of observations, not five trades. OHLC does not tell you the exact order of all intrabar prices or the intent of market participants.
Our operational rule
Only a completed candle has a final close. Its high must be at least its open and close; its low at most both.
Worked example
A candle opening at 1.0800 and closing at 1.0810 has a rising body, even if it first moved lower.
Counterexample
A high and low touched in the same candle do not reveal which happened first.
Watch for this mistake
Reading an unfinished candle as a confirmed pattern.
Charts are synthetic. These classification rules are not evidence of profitability.
Source and conventions
OANDA · FX mechanics reference
Broker documentation supports standard quote/position mechanics. Contract terms and execution conventions can differ. No broker endorsement.
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