23/06/2025
Structure of a Candlestick
A candlestick consists of two main parts:
1: Body: The rectangular area between the opening and closing prices. It represents the range between these two prices.
Bullish Candle (Green or White): If the closing price is higher than the opening price, the market moved up, indicating buying pressure.
Bearish Candle (Red or Black): If the closing price is lower than the opening price, the market moved down, indicating selling pressure.
2: Wicks (Shadows):
The thin lines above and below the body, representing the highest and lowest prices reached during that period.
Upper Wick (Upper Shadow):
The distance between the highest price and the closing/opening price. A long upper wick may indicate selling pressure.
Lower Wick (Lower Shadow): The distance between the lowest price and the closing/opening price. A long lower wick may indicate buying pressure.
3: Real Body vs. Wick Length:
If the closing price is higher than the opening price, the market moved up, indicating buying pressure.
A short body indicates consolidation or indecision in the market.
If the closing price is higher than the opening price, the market moved up, indicating buying pressure.
The structure of a candlestick helps traders determine price action and market sentiment, allowing them to make informed trading decisions.