2.1Candlesticks
- ·The four data points in every candle
- ·Body, wick and range anatomy
- ·What a candle actually represents
Each candle contains four basic pieces of information:
- ·Open
- ·High
- ·Low
- ·Close
- ·Bullish candle — closes above its open
- ·Bearish candle — closes below its open
- ·Body — the distance between open and close
- ·Upper wick — the distance from body to high
- ·Lower wick — the distance from body to low
- ·Range — the distance from high to low
A candle is not simply a green or red object. It represents the battle between buying and selling pressure over a defined period.
Read the composition of the candle, not its colour.
A bullish close with a long upper wick shows buyers finished ahead but were rejected from the highs — a different message from a full-bodied close at the high.
Examples use historical or illustrative data only. They are not live market signals.
Mark five candles on a daily chart and describe, in one sentence each, what the body and wicks suggest about pressure.
The body of a candle measures:
Price closes bearish with a long lower wick at a demand area. What does the wick most reasonably suggest?
- 01Every candle carries open, high, low and close.
- 02Body and wicks describe the distribution of pressure.
- 03Colour alone is not information.
Educational content only. Nothing here is financial advice or a recommendation to trade. Trading involves risk of loss, results vary between individuals, and past performance does not indicate future results. Only capital you can afford to lose should be exposed to market risk.