Candlestick patterns
6 min read · Educational content, not financial advice
Each candlestick shows four prices for a given period: open, high, low and close. The 'body' shows the range between open and close; the 'wicks' show the high and low extremes. A green (or hollow) candle typically means price closed above where it opened; a red (or filled) candle means the opposite.
Patterns formed by one or more candles are read as clues about buyer/seller conflict. A long wick with a small body (a 'pin bar' or 'hammer') can suggest a failed attempt to push price further, often noted near support or resistance. A small-bodied candle after a strong trend (a 'doji') can suggest indecision.
No candlestick pattern is a signal on its own — professional use treats them as context, combined with the broader trend, support/resistance and other confirmation, rather than a standalone trading trigger.