Lesson 1 of 8 · Candles & Chart Patterns
Candle anatomy
One candle tells four things.
A single candle shows the open, high, low, and close for a period. The body is the range between open and close. The wicks extend to the high and low. A green body means price closed above where it opened. Red means below.
The four data points on one candle.
HIGH marks the top of the upper wick. LOW marks the bottom of the lower wick. OPEN and CLOSE determine the body. Those four numbers per candle are everything a price bar contains.
Body size and wick placement tell you who controlled the session.
Big bodies on above-average volume signal conviction. Long wicks signal rejection. A tall upper wick on a green candle means buyers pushed price up hard, then sellers slapped it back before the close. A long lower wick means sellers tried to take it down but buyers recovered. The close is the most important number: it's where the market settled.
A candle has a small body and a very long upper wick. What does this suggest?
Show the answer
B. Buyers pushed price up but sellers rejected the move. A long upper wick means price traded much higher but was pushed back down. The wick shows the battle; the body shows who won.