Step by step
How to read it
- 1The body: from the open to the close.
- 2The upper wick reaches the high of the period.
- 3The lower wick reaches the low.
- 4Hollow candle: closed higher than it opened. Filled: closed lower.
Watch out
Common mistake
Reading a candle without its place. The same candle means little in the middle of nowhere and a lot at a key level.
In one line
Definition
One period of price on a chart: open, high, low and close. The body runs from open to close; the wicks show where price went and did not stay.
Check yourself
Check yourself
A candle opens at 100 and closes at 104. How is it drawn on our charts?