Key Takeaways
✦Every candlestick tells a complete price story for its time period The body shows who won — bulls (green) or bears (red) Wicks reveal rejected price levels and failed attempts A long body means strong momentum — short body means indecision Reading candles is the foundation of all price action trading
Contents
01
The Anatomy of a Candle
Every candlestick tells a complete price story for a selected time period — whether it's 1 minute or 1 day. To read that story, you must first know its parts.
Parts of a Candlestick
| Part | Meaning | Pysocology |
|---|---|---|
| Open | The first traded price of that candle | The emotional starting point — where the battle begins |
| Close | The final traded price | The result — who won (bulls or bears) |
| High | The highest price during that period | The strongest push by buyers |
| Low | The lowest price during that period | The deepest attempt by sellers |
| Body | Difference between Open and Close | Strength of control — long body = strong momentum |
| Wicks / Shadows | Lines above & below the body | Rejections — areas where price was pushed back by the opposite force |
04
Shadows & Wicks — Where the Truth Hides
Wicks — also called shadows — are the thin lines above and below a candle's body. Most beginners ignore them. Professional traders live by them.
A candle may look bearish at first glance, but a long lower wick tells a different story: buyers stepped in aggressively and rejected lower prices. That single detail can be the difference between a losing trade and a winning one.
Understanding Wick Types
| Wick Type | Interpretation | Market Emotion | |
|---|---|---|---|
| Bullish | Long Upper Wick | Sellers rejected higher prices | Profit booking / resistance pressure |
| Bearish | Long Lower Wick | Buyers rejected lower prices | Support / rebound pressure |
| Neutral | Small Wicks | Stable, balanced market | Neutral momentum |
| Strong | No Wick (Marubozu) | One-sided price control | Strong conviction — no rejection |
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