Anatomy of a Candle
Each candlestick shows four prices for a period: Open, High, Low and Close (OHLC). The body is between open and close; the wicks show the extremes.
- Green (bullish) = close above open
- Red (bearish) = close below open
Timeframes
A single M15 candle summarises 15 minutes. A D1 candle summarises a whole day. Zooming out reveals the bigger structure.
Common Single-Candle Patterns
- **Doji**: indecision, open ≈ close
- **Hammer / Hanging Man**: long lower wick, small body
- **Shooting Star / Inverted Hammer**: long upper wick, small body
- **Marubozu**: full body, no wicks — strong momentum
Two- and Three-Candle Patterns
- **Engulfing** (bullish/bearish)
- **Piercing / Dark Cloud Cover**
- **Morning Star / Evening Star**
Reading Candles in Context
A hammer at a support level in an uptrend is meaningful. The same hammer in the middle of a range is often noise. Always read candles with the surrounding structure.
Key Takeaways
- Candles encode price behaviour visually.
- Individual patterns are hints; confluence is what counts.
- Trade patterns in the direction of the higher-timeframe trend when possible.