The four data points that tell the whole story
A single candlestick compresses an entire period of trading — every buy, every sell, every moment of fear and greed — into four numbers: open, high, low, and close. Learning to read what those four numbers mean in context is the foundation of everything that follows.
Anatomy of a bullish (green) candle — price closed higher than it opened
The body of a candle shows you the battle's outcome. A green (bullish) body means buyers pushed price higher from open to close. A red (bearish) body means sellers pushed it lower. The larger the body, the more decisive the victory.
A tiny body — where open and close are almost the same — tells you neither side won. The market is indecisive, and a decision is coming. These moments often precede explosive moves.
Anatomy of a bearish (red) candle — price closed lower than it opened
This is where most beginners miss the real story. The wicks (also called shadows) show you price levels that were reached but couldn't be held. A long lower wick on a green candle means sellers pushed price down aggressively — but buyers fought back and reclaimed everything by the close.
Wicks represent rejection. A long wick in any direction means that level was tested and rejected. The longer the wick relative to the body, the stronger the rejection.
Think of it this way: the body tells you who won, but the wicks tell you the story of the fight. A candle with no upper wick and a long lower wick means buyers dominated completely — sellers tried to push down and got crushed. That's very different from a candle with equal wicks on both sides, which shows a balanced tug-of-war.
A candle has a small body and a very long lower wick. What does this tell you?