A candlestick shows four prices for a period: Open, High, Low and Close. The body spans open to close; the wicks reach the high and low.
A bullish candle closes above its open; a bearish candle closes below it.
Charts help you describe what price has done. They do not predict the future.
Key definitions
- Support
- A price area where buying has previously slowed declines.
- Resistance
- A price area where selling has previously slowed advances.
Key takeaways
- Zones, not exact lines
- Structure: higher highs/lows vs lower highs/lows
- Interpretation is subjective