What a single candle tells you

Summary

The body runs from the open to the close. A green (or hollow) body means the price closed higher than it opened; a red (or filled) one means it closed lower. The thin lines above and below, the wicks, show how far the price travelled before it was pushed back. A long wick means one side tried and failed — often more telling than the colour of the body.

Key points

• Green closed higher than it opened; red closed lower.
• A long upper wick shows selling at the highs.
• One candle alone says little: read it against the candles before it.

Check yourself

A candle has a small body and a very long upper wick. What does it usually show?

Practice