Reading candles
What wicks and bodies suggest
Long wicks mark prices that were tried and rejected; long bodies mark one side staying in control.
Widely taught. The Exchange can test it on public price history and will say what it finds.
A way of describing price. Studies of candle patterns as signals are summarized under candlestick-studies.
What it is
An upper wick shows buyers pushed price up and sellers pushed it back. A lower wick shows the reverse. Small bodies with long wicks on both sides show a period where neither side held control.
What it suggests
This is an interpretation of behavior, useful as a way to describe a candle. It has not been shown to predict the next move by itself.
How to check it
Ask which side lost ground during the period, and whether that loss happened at a level that matters to the trader's plan.
Common mistakes
- Reading one candle as a forecast.
- Ignoring where the wick formed.
Related lessons
Written in our own words. Education only, not financial advice.