An ordinary candlestick summarises four prices for a defined interval: open, high, low and close. It is a compact view of market data, not a complete record of the path or the motives of the people who traded.

Read Body and Wicks

The body spans open to close. The upper wick extends to the high and the lower wick to the low. For an illustrative open of $50, high of $52, low of $49 and close of $51, the body is $1 tall, with a $1 wick at each end.

Colour often compares the close with the open, but settings can change that. TradingView's candle documentation includes a previous-close colour option. Check the actual OHLC values before interpreting a green or red candle.

A long body shows a large open-close difference. It does not prove one side controlled every moment of the interval. A small body can coexist with a large intraperiod move.

Know What Is Missing

OHLC does not reveal whether the high occurred before the low. If both a stop and target fall inside the candle, you need additional data or an explicit ambiguity assumption to decide a historical trade's outcome.

A still-forming candle can change until its interval closes. Session settings, data source and missing observations affect the result. Synthetic candle types such as Heikin-Ashi use calculated values and should not be treated as a list of directly available fill prices.

Pattern Names Describe Shapes

A doji has nearly equal open and close under a chosen tolerance. A hammer has a small upper body and long lower wick under its convention. An engulfing pattern compares two bodies; it does not require both full ranges to be engulfed. A shooting star uses a small lower body and long upper wick after a defined rise.

Each can be studied as a condition within a strategy. None supplies a universal reversal rate, and adding volume or a higher timeframe does not automatically make it reliable.

Practise Without Selecting Winners Afterwards

Hide future bars, describe the current shape and state a rule before revealing what follows. Record failures as well as memorable turns. Separate learning the notation from testing whether an entry and exit rule has net value.

OHLC bar charts can show the same four values in another form. Use the display you can read accurately; no chart style is mandatory. Our timeframe guide explains the consequences of changing the interval.

Risk Disclaimer: Trading involves substantial risk of loss. Past performance is not indicative of future results. See our full risk disclaimer.