The four prices
The body spans the open and the close. The wicks reach the high and the low. A body coloured one way means the close was above the open, the other way means below. Everything else people read into candles is interpretation layered on those four numbers.
What the wicks tell you
A long wick means price went there and did not stay. That is genuine information: it says an attempt at a level was rejected within the period. A candle that is almost all wick had a great deal of disagreement and very little conclusion.
Timeframe is a choice, not a fact
The same market drawn on a five minute chart and a daily chart produces completely different candles. A pattern on one timeframe does not exist on another. Which one to use is a decision about how long you intend to hold, not about which is more true.
One candle rarely means much
Named patterns get a great deal of attention and most of them fail as often as they work when taken alone. Where a candle forms — at a level, against a trend, after a run — carries far more information than its shape.
In short
| Body | Open to close |
|---|---|
| Wicks | High and low |
| Colour | Whether the close was above or below the open |
| Timeframe | Changes every candle on the chart |
Common questions
Which timeframe should I use?
One that matches how long you intend to hold and how often you can look at the screen. A trader checking twice a day cannot manage a five minute strategy, whatever the chart appears to offer.
Are candlestick patterns reliable?
Not on their own. Their reputation comes largely from examples chosen after the fact. Context — where the candle formed, and what came before it — carries the information.
Why do my candles differ from another platform?
Because brokers close their daily candle at different times, and each uses its own feed. A daily candle is defined by the broker’s server time, not by anything universal.
Trading forex and CFDs on margin carries a high level of risk. Most retail accounts lose money. Nothing on this page is financial advice or a recommendation to trade.