Candlestick Basics

Before any pattern makes sense, a single candle has to make sense, because every pattern is really just a handful of these stacked next to each other and read as a group. Four numbers, one shape Same four numbers, two outcomes. Blue closes above open, orange closes below it. Each candle covers one fixed slice of time, a minute, an hour, a day, whatever the chart is set to, and it’s built from four prices: the open and close, which set the top and bottom of the solid body, and the high and low, which set the thin wicks above and below it. If the close finishes above the open, the body is blue on this site’s charts (many platforms use green); if it finishes below, it’s orange (or red elsewhere). The colour is just a shortcut for which of those two numbers won. ...