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Candlestick Basics Explained

A candlestick packs four prices — open, high, low, close — into one shape. Reading the body and wicks tells you who controlled the session at a glance.

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Body direction shows who won the session; wick length shows how far the losing side was rejected.

The anatomy of a candle

Each candle covers one time period and shows four prices. The body spans the open and close: a green (or hollow) body means it closed above its open (buyers won); a red (filled) body means it closed below (sellers won). The thin wicks (or shadows) mark the high and low reached.

The relationship between body and wicks is the message. A big body with tiny wicks means one side dominated end to end. A small body with long wicks means the session swung hard but finished near where it began — indecision.

Reading the shape

A long lower wick shows sellers pushed down but were rejected (see the hammer); a long upper wick shows buyers were rejected. A near-bodiless candle is a doji — indecision.

No single candle is a signal on its own. Its meaning comes from where it prints — at a level, after a trend, or following a liquidity sweep. Context first, candle second.

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Frequently asked questions

What do the parts of a candlestick mean?

The body shows the open-to-close range and its colour shows direction; the wicks (shadows) show the highest and lowest prices reached during the period.

What does a green candle mean?

A green (or hollow) candle closed higher than it opened, meaning buyers were in control that period. A red (filled) candle closed lower, meaning sellers were in control.

What does a long wick tell you?

It shows a rejection: a long lower wick means price was pushed down but buyers reclaimed it; a long upper wick means buyers were pushed up but sellers took over.