Japanese Candlesticks

Candlestick charts pack four pieces of information into every bar: the open, high, low, and close for a period.

Anatomy of a candle

• The body shows the open-to-close range.
• The wicks (shadows) show the highest and lowest prices reached.
• A bullish candle closes higher than it opened; a bearish one closes lower.

Patterns like dojis, hammers, and engulfing candles hint at shifts in momentum — but they're most reliable when combined with other clues.