*This section is for people who are very new to candle sticks or charts, and hence for those who are already familiar with this should move to the next page.

What are “Candle Sticks”

 A candle stick represents price action within a time frame.
> The candle sticks body represents the price that it started and the price it ended within a particular time frame.
> The wicks of a candle stick represent what happened to price during a period. It shows you the range of the price action during that time.


The colors of candle stick:
In general, red candle sticks denote price has dropped. Meaning price in that time ended lower (body of the candle) than when it started.
Green candle sticks denote the opposite, price ended up higher than when it started.

The structure of the candle stick:
The structure or overall picture of the candle stick tells you the summary of price action.
For example below, the HAMMER candle stick has a long wick below the body compared to the top (no wicks) and to the rest of the body of the candle stick.
This tells you, strong buying pressure came from the bottom. Hence why the following candle sticks moved upwards.



* click on image for a closer look

What you see here are many individual candle sticks and together they represent price action (price movement) over a particular time frame.

This graphical representation on a candlestick chart is to help summarize what is happening with price. It tells you a story.