How to read the chart and how to know which direction does it go
The great question ,
This might help. I’d recommend going through the next lessons too.
Good luuuuck!
https://www.babypips.com/learn/forex/kindergarten#types-of-charts
The direction is defined by the price of the trading pair compared to the previous price.
If the price is rising it is trending up.
If the price is declining it is trending down.
The trend is defined on the time frame.
If you use daily timeframe, D1, then you can see in which direction does it go, up or down, comparing the current price and previous price.
When you see the price go down and then up, again fown and up, you connect the line between two tops and two bottoms.
That line is trendline and it will show you in which direction does the price is moving.
Refer to the babypips education section, they have got all this covered in an amazing way. You will surely understand.
If the Candle is Red, what it is telling us is that the market in that fraction of time (1 day, 1 hour, 5 minutes …) has gone down. If the Candle is green, it is indicating that the market, in that time, has risen. That is why it happens that the color of the candle is not really defined until the end of that Fraction of time. You can open at a price, start to rise and, therefore, it will be colored green, and after reaching a maximum, fall below the opening price and close there, so that the candle, once the price It drops below the Opening Pº, it will start to turn red