A single candlestick visualizes price action over a specific timeframe (e.g., 1 minute, 1 hour, or 1 day) using four data points: .
: Indicates the highest price reached during the period. Candlestick Basics Pdf
: The rectangular center representing the range between the opening and closing prices. A single candlestick visualizes price action over a
: A small body at the top with a long lower wick; signals a potential bullish reversal after a downtrend. : A small body at the top with
: The price closed higher than it opened.
: A small body at the bottom with a long upper wick; signals a potential bearish reversal after an uptrend.
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