Candlesticks 101

Reading a single candle

A candlestick summarises price movement over one period: the open, high, low and close (OHLC). The thick body spans open to close; the thin wicks mark the extremes. A candle closing above its open is bullish; below, bearish.

What bodies and wicks tell you

• Long body, small wicks: one side controlled the whole period — conviction.
• Small body, long wicks: a battle with no winner — indecision.
• Long wick on one side: price was pushed to an extreme and rejected. A long lower wick after a decline suggests buyers stepped in.

Common patterns worth knowing

• Pin bar / hammer: a long rejection wick with a small body, often at a level.
• Engulfing: a candle whose body fully covers the previous one, suggesting a shift in control.
• Doji: open and close nearly equal — indecision, meaningful mainly after a strong move.