Candlestick anatomy

Each candle records a contest between buyers and sellers over one period.

The parts

BodyUpper wickLower wickOpenCloseBullishBearish

The body is the range between the open and the close. A long body means one side was firmly in control for the whole period.

Tap a part of the candle. Switch between bullish and bearish to see how open and close swap places.

The body runs from the open to the close. The wicks reach to the high and the low. A bullish candle closed above its open; a bearish candle closed below it.

Reading the story

The shape says more than the colour:

• Long body, short wicks: one side controlled the whole period. Conviction.
• Small body, long wicks on both sides: a tug-of-war that nobody won. Indecision.
• Long lower wick, small body near the top: sellers pushed down, buyers forced it back. Rejection of lower prices.
• Long upper wick, small body near the bottom: buyers pushed up, sellers forced it back. Rejection of higher prices.

Three shapes have names worth knowing. A doji has almost no body: open and close nearly equal. A hammer has a long lower wick and a small body at the top. A shooting star is the opposite: long upper wick, small body at the bottom.

Try it

OpenCloseUpper wick lengthLower wick length

Move the sliders. The candle redraws and the name of the shape updates. Try making a doji, then a hammer.

Notice how the name changes most when the body shrinks or one wick grows. The ratio of body to wicks is what matters, not the colour.

Quick check

1. Question 1 of 3

   A candle has a tiny body and long wicks above and below. What does it suggest?

   AStrong buyingBIndecision between buyers and sellersCLow volume

Go deeper: How to read candlestick charts · 12 candlestick patterns every trader should know