Candlestick anatomy: reading a single candle
One candle is a complete short story: where the fight began, how far each side pushed, and who was standing at the end.
Explorer · 9 min · Updated 2026-11-08
💡 A tug-of-war with a ribbon
Picture a tug-of-war rope with a ribbon tied to the middle. When the whistle blows (the open), the ribbon is at the centre line. During the round, one team drags it far to their side, then the other team pulls back. When the final whistle blows (the close), the ribbon stops somewhere. The candle body shows where the ribbon started and finished. The wicks show the furthest each team managed to pull it, even if they could not hold it there.
The four prices: OHLC
| Price | Meaning | Where it appears |
|---|---|---|
| Open | First traded price of the period | One end of the body |
| High | Highest price reached | Tip of the upper wick |
| Low | Lowest price reached | Tip of the lower wick |
| Close | Last traded price of the period | Other end of the body |
If the close is above the open, the candle is bullish (usually green): buyers ended the period in control. If the close is below the open, it is bearish (usually red). Colours are a convention — some platforms use other colours, so always check.
Reading the body
- Long body: one side dominated. A long green body after a quiet period shows strong buying.
- Small body: neither side won clearly — indecision or a pause.
- No body (doji): open ≈ close. A perfect tie after a fight.
Reading the wicks (shadows)
- Long lower wick: sellers pushed price down, but buyers rejected those lower prices and pulled it back. Often called "rejection of lows".
- Long upper wick: buyers pushed up, but sellers rejected the higher prices.
- Wicks on both sides: a volatile, undecided battle.
A useful habit is to measure the wick against the body. A lower wick at least twice the body length is a strong rejection signal — the basis of the hammer pattern you will meet later.
Volume: how many people joined the fight
Volume tells you how much traded during the candle. A big green candle on tiny volume is like a loud argument between two people; a big green candle on double the average volume is a stadium cheering. Most charting tools show volume as bars underneath the candles.
Close is king
Price can travel anywhere during a candle, but the close is the price the market agreed on when the period ended. Professionals wait for a candle to close before acting on it: a breakout that wicks above a level but closes back below it is not a breakout — it is a rejection.
🧮 Practical example: reading a 4-hour BTC candle
Key takeaways
- Every candle = Open, High, Low, Close.
- Body shows who won; wicks show rejected prices.
- A wick ≥ 2× the body is a strong rejection clue.
- Close is king — wait for it.
- Volume shows how many joined the fight.
Education only — not financial advice.