Every candle records four prices in one period: Open, High, Low, Close.
- Body — the distance between open and close. A long body = a decisive move in one direction.
- Wick / shadow — the distance from the body to the high/low. A long wick = price went there and was then rejected.
- Color — usually green/white when close > open (bullish), red/black when close < open (bearish).
How to read it
Ask three things: (1) who closed in the winning position — buyers or sellers? (2) how convinced were they, judging by the body length? (3) was there rejection, judging by the wicks?
Key points
- Body = conviction. Wick = rejection. Color = the winner of that period.
- A single candle rarely means much without the candles around it.
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