: Indicates the lowest price reached during the period.
: A small body at the top with a long lower wick; signals a potential bullish reversal after a downtrend.
: The price closed lower than it opened. Shadows (Wicks) : The thin lines extending from the body. Candlestick Basics Pdf
This guide covers the fundamental components of Japanese candlesticks and essential patterns to help you interpret market sentiment. For a deeper dive, you can refer to the foundational work in . 1. Anatomy of a Candlestick
: A small body at the bottom with a long upper wick; signals a potential bearish reversal after an uptrend. : Indicates the lowest price reached during the period
: Long bodies indicate strong buying or selling pressure, while short bodies suggest low activity or indecision. 2. Essential Candlestick Patterns
: The rectangular center representing the range between the opening and closing prices. Shadows (Wicks) : The thin lines extending from the body
: Indicates the highest price reached during the period.