Reading the candle’s story

Japanese Candlesticks — Lesson 3 of 12

A candle is not a rigid shape but a story of a struggle between buyers and sellers during its period. Once you get used to reading that story from the length of the body and the wicks, you will no longer need to memorise names alone.

The meaning

Shape	The story
A long green body	Complete buyer control throughout the period
A long red body	Complete seller control throughout the period
A long upper wick	Buyers tried to push up, sellers repelled them and drove price back
A long lower wick	Sellers tried to push down, buyers repelled them and drove price back
Two long wicks and a small body	A fierce struggle with no winner — hesitation
A short candle	A small range and calm — no resolution in either direction

03 — Lesson 3 of 12

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