Anatomy of a candle
Each candle shows the open, high, low and close for its period. The body spans open to close, while the wicks mark the extremes that were rejected during that period.
Sequence carries the meaning
A long lower wick after an extended decline tells a different story from the identical candle appearing mid-range. Context — where the candle forms relative to prior structure — is what gives it information value.
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Frequently asked questions
Which timeframe should I use?
Higher timeframes contain fewer, more significant candles. Many educational approaches suggest establishing direction on a higher timeframe before refining timing on a lower one.
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