Been staring at charts for weeks but still getting confused about the basics.
The body shows open to close price movement, right? And wicks are the highs and lows during that period?
Want to make sure I understand this correctly before moving on to patterns.
Exactly right. Body thickness is key - thick bodies mean strong moves, thin ones show the market’s unsure. This video breaks down candlesticks really well if you’re starting out.
Long wicks tell you a lot. Upper wicks mean buyers pushed higher but sellers fought back and won. Lower wicks show buyers defending a price level. Location matters though. A hammer with a long lower wick at support is often a bounce setup. A shooting star with a long upper wick at resistance usually means the price got rejected.
Wick size matters way more than people realize.
Small wicks? Price moved smoothly - buyers and sellers weren’t really fighting.
Big wicks scream rejection. I’ve blown trades ignoring candles with massive wicks at important levels. Those long shadows are price screaming “someone tried to push but got smacked down.”
Learn doji candles too - open and close are basically identical. Pure indecision. They often flip trends, especially after big moves.
You got it. The body represents the move from open to close price, while the wicks indicate the highest and lowest prices in that period.
A green or white candle means the price increased, and a red or black candle means it decreased.
Understanding individual candles makes recognizing patterns much simpler.
Body color shows if buyers or sellers are in control.