What is Candlestick?
The body is usually drawn green or hollow when the close is above that candle's own open, and red or filled when it is below; the wicks, also called shadows, reach the period's high and low. A long body shows a large net move inside the period, while a long wick shows that price travelled further but was pushed back before the close. A candle records endpoints and extremes, not the path between them, so the same shape can mean different things depending on location, trend, volume and timeframe.
Also called candle, candlestick chart, Japanese candlestick
Reading one candle (illustrative)
- Open
- 50
- High
- 58
- Low
- 49.5
- Close
- 51
- Up candle: body / upper wick / lower wick
- 1 / 7 / 0.5Price reached 58 but was pushed back before the close.
Candle names are not signals
A pattern name without location, trend and volume is not evidence; the same long lower wick can appear during a decline and after a rise.