Candlesticks
Anatomy of a Candlestick
Learn how open, high, low, close, candle bodies, and wicks describe price movement on a trading chart.
Updated 2026-05-14
A candlestick compresses a period of price movement into one visual object. On a one-hour chart, one candle shows what happened during one hour. On a daily chart, one candle shows one trading day.
The time period changes, but the candle structure stays the same.
The four prices inside every candle
Every candle is built from four prices:
- Open: where price started during that period.
- High: the highest price reached during that period.
- Low: the lowest price reached during that period.
- Close: where price ended during that period.
These four values are often called OHLC. Once you understand them, a candle becomes a small story about pressure, rejection, and direction.
Body and wick
The candle body is the distance between the open and the close. It shows where price started and where it finished.
The wicks, sometimes called shadows, show the extremes. The upper wick reaches toward the high. The lower wick reaches toward the low.
What to read first
- A large body shows stronger movement from open to close.
- A small body shows less progress during the candle period.
- A long wick shows price moved into an area and then pulled back.
- The close matters because it shows where the period finally settled.
Why the close matters
Beginners often focus only on the high and low. The close is just as important because it shows the final result of the period.
For example, if price pushes much higher but closes near the open, buyers did not keep control into the end of the candle. That does not mean price must reverse, but it tells you the move was rejected during that period.
Practice goal
When you study candles, do not memorize shapes first. Practice describing what happened:
- Where did price open?
- How far did it travel?
- Where did it close?
- Did the candle leave a long wick?
- Did the body show strong progress or hesitation?