Let's Start with Reading a Single Candle
Once you know the body, the wick, and the color, charts start looking completely different.
What One Candle Actually Tells You
A single candle captures price movement over a set time period (1 minute, 1 hour, 1 day, etc.) — and it packs four pieces of information: open (starting price), high, low, and close (ending price).
The thick part is the "body," and the thin lines extending up and down are the "wicks" (or shadows). The body spans between open and close; the wicks show the highest and lowest price reached during that period.
Bullish and Bearish Candles
When the close is higher than the open, it's a "bullish" candle (usually green or white) — buyers won that period.
When the close is lower than the open, it's a "bearish" candle (usually red or black) — sellers won. Just glancing at the color tells you who was in control during that period.
3 Candlestick Patterns Worth Knowing
A handful of single-candle patterns reveal market psychology on their own.
① Doji — open and close are nearly equal, leaving a thin cross-shaped body. It signals a tug-of-war between buyers and sellers, and can hint at a trend change. ② Hammer — small body with a long lower wick. Appearing after a decline, it signals strong buying pressure stepping in at the low. ③ Engulfing — a candle whose body completely swallows the previous candle's body in the opposite color. A strong signal that the trend may be reversing.
Don't Judge from a Single Candle Alone
Seeing a hammer or an engulfing candle doesn't automatically confirm a reversal. Whether it appears near support/resistance, whether volume backs it up, and what the overall trend looks like all matter for reliability.
Rather than acting on one pattern alone, build the habit of checking it alongside support/resistance or moving averages, as covered earlier.
Pattern Confirmed? → Calculate Your Leverage
Go to the Calculator →Read the Candle, Then Let the Numbers Decide
Once a candlestick pattern gives you a hint about timing, it's time to calculate the safe position size based on that entry and stop-loss.