A single candlestick visualizes price action over a specific timeframe (e.g., 1 minute, 1 hour, or 1 day) using four data points: .
: A small body at the bottom with a long upper wick; signals a potential bearish reversal after an uptrend.
: The price closed higher than it opened. Candlestick Basics Pdf
: Indicates the lowest price reached during the period.
: The rectangular center representing the range between the opening and closing prices. A single candlestick visualizes price action over a
: Long bodies indicate strong buying or selling pressure, while short bodies suggest low activity or indecision. 2. Essential Candlestick Patterns
: The price closed lower than it opened. Shadows (Wicks) : The thin lines extending from the body. : Indicates the lowest price reached during the period
This guide covers the fundamental components of Japanese candlesticks and essential patterns to help you interpret market sentiment. For a deeper dive, you can refer to the foundational work in . 1. Anatomy of a Candlestick