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Technical Analysis 1 min read

Candlestick Chart

Also known as: Japanese Candles, OHLC

A chart format that shows open, high, low and close price per time interval. The foundation of technical analysis.

Anatomy

  • Body — filled area between open and close.
  • Wick (shadow) — thin line showing the high and low reached.
  • Color — green / white = close > open, red / black = close < open.

Popular single-candle patterns

  • Hammer / Inverted Hammer — long wick, small body. Reversal signal at support.
  • Doji — open ≈ close. Indecision.
  • Engulfing — a larger body fully containing the previous candle's body. Reversal.
  • Marubozu — big body, no wicks. Strong trend candle.

Timeframes matter

The same pattern on 1-minute and 1-day charts carries wildly different weight. Higher timeframe > lower timeframe, always.