Candlestick Anatomy
Every chart you'll ever trade is built from candlesticks. Master what a single candle tells you about the fight between buyers and sellers, and you've taken the first real step toward reading price action.
The four prices in every candle
A candlestick summarises a period of time using four prices: the open, high, low and close. The thick part is the body (open to close) and the thin lines are the wicks (or shadows), marking the highest and lowest prices reached.
- Body = the range between open and close
- Upper wick = rejection of higher prices
- Lower wick = rejection of lower prices
- Colour = green/bullish when close > open, red/bearish when close < open
Where a candle closes — especially relative to a key level — matters far more than its colour. A red candle closing above resistance is more bullish than a green candle that fails below it.
What body and wicks reveal
A large body with small wicks shows conviction — one side dominated the entire period. A small body with long wicks shows indecision and rejection — price tried to move but got pushed back. Long wicks at key levels are some of the most actionable information on a chart.
Location is everything
The exact same candle means different things in different places. A hammer at support is a potential reversal; the identical shape mid-range is noise. This is why professional traders never trade candles in isolation — they read them in the context of structure, support/resistance and trend.
| Candle look | Likely message | Best location |
|---|---|---|
| Large body, tiny wicks | Strong conviction / trend | Breakouts |
| Small body, long wicks | Indecision / rejection | Key S/R levels |
| Long lower wick | Buyers absorbing | At support |
| Long upper wick | Sellers absorbing | At resistance |
Key takeaways
- Candle = Open, High, Low, Close
- Body = open→close · Wicks = rejected extremes
- Big body = conviction · Long wicks = rejection/indecision
- Lower wick at support = buyers; upper wick at resistance = sellers
- Always read candles in context, never alone
Test your knowledge
1. What does the body of a candlestick represent?
2. A long lower wick at support most likely signals…
Frequently asked questions
Higher timeframe candles (4H, daily, weekly) carry more weight because they reflect more participants and capital. Lower timeframe candles are noisier.
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