Reading a candlestick chart
Each candle shows four prices for one period: open, high, low and close. A green (or white) candle closed higher than it opened; a red (or black) one closed lower. The thin lines (wicks) show the high and low.
- A long lower wick at a low price shows buyers pushed back strongly.
- A big candle closing near its high shows strong buying.
- Small candles with long wicks on both sides show indecision.
Questions people ask
Does technical analysis really work?
It works as a framework for planning trades and managing risk. No pattern works every time, so results depend on testing, risk control and discipline.
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