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How to Read the Last Three Candles

The last three candles on a chart are the market's three most recent days, and reading them means asking each one three questions: which colour, how tall, and where did it close. This paper shows you the reading on the euro's 6, 7 and 8 October 2025 drawn from real prices, the three questions under a magnifying glass, the chart as it stood that evening, the reading written out one line per candle, and how to get to the right edge of the chart on your platform.

Difficulty
Advanced
Reading time
5 min
Pages
8
Reviewed by
Saman Rahbar

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The three newest candles

The last three candles on a chart are the market's three most recent days, and they are read one at a time. On the euro against the dollar, as the chart stood on the evening of 8 October 2025: 6 October opened at 1.1721, dipped 57 pips — a pip being the fourth decimal place, the smallest step most people count in — and came back to close 12 pips under its open. 7 October fell 52 pips and closed 8 pips off its low. 8 October fell 24 more, dipped a further 25, and came back. Three red days, each a different shape.

Three questions

Reading a candle is asking it three questions. Which colour is it: did the day close above its open, green, or below it, red? How tall is it, against the days around it: an ordinary day, a big one, or a small one? And where inside its range did it close: near the top, near the bottom, or in the middle, leaving a wick — the thin line beyond the body — on one side or both? Three answers for each of three candles, and the reading is done.

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