How to read a candlestick in 3 minutes
Each candle summarises one period of trading, for example one hour on the H1 chart.
The body
The thick part shows where price opened and closed. A green (or white) body closed above its open; a red (or black) body closed below.
The wicks
The thin lines show the highest and lowest price traded during the period. A long wick means price went there and was rejected.
What to look for
Long bodies show conviction. Long wicks at a support or resistance level show rejection. Small bodies after a strong move show hesitation. Most named patterns are just combinations of these three ideas.
Practical takeaway: a candle only means something in context. A rejection wick at a level you marked in advance is information; the same wick in the middle of nowhere is noise.
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