Module 3 — Price behaviour
Reading candlesticks
5 minute read
In plain English
Each candle summarises one period of trading: where price opened, where it closed, and the highest and lowest points in between. The body is open-to-close, the wicks are the extremes.
Why it matters
Candles let you see, at a glance, whether buyers or sellers finished a period in control — and how much disagreement there was.
Example
A candle with a long upper wick means price pushed higher during the period and was sold back down before it ended.
Try this
Open a 5-minute chart and describe three candles out loud before looking at anything else.
Common mistake
Reading single candles as signals. Context — where the candle sits, and on what volume — matters far more than its shape.
What this does not mean
No candle pattern predicts the next candle.
Educational content only. Not financial advice.