Candle Patterns

Understanding the Basics of a Candlestick

Each candlestick represents the price movement of an asset within a specific time period — it could be one minute, one hour, one day, or even one week.

A candlestick consists of four main components:

Open – the price at which the asset started trading for the period.

Close – the price at which the asset finished trading for that period.

High – the highest price reached during the period.

Low – the lowest price reached during the period.

The body (the thick part of the candle) shows the range between the open and close prices.

If the close is higher than the open, the candle is bullish (usually green or white).

If the close is lower than the open, it’s bearish (usually red or black).

The thin lines above and below the body are called wicks or shadows, showing the highest and lowest traded prices.