The four numbers in every candle
Each candle compresses four prices for a period: open, high, low, close. The 'body' spans open to close; the 'wicks' (or shadows) extend to the high and low.
What actually matters
Forget pattern names. What matters is the relationship between body and wick, and between consecutive candles:
- A long body with small wicks = conviction.
- A small body with long wicks = indecision.
- A sequence of higher highs and higher lows = an uptrend, by definition.
Common mistakes
Reading candles in isolation is the single biggest beginner mistake. Always pair them with volume and with the next-larger timeframe for context.
Not financial advice
This lesson is educational material, not personalized advice. Examples and case studies are illustrative. Trading carries real risk of loss — never invest money you cannot afford to lose, and consult a licensed professional for guidance specific to your situation.