Reading One Candle
By the end, you can explain what a single candle reveals and what it hides.
A box score, not a full replay. It tells you the final score and the biggest lead, but not the exact order every point was scored.
A candle tells you what happened, not the exact path. A green candle with a long lower wick means price fell, tested lower prices, and got rejected back up — but you can't know if that dip happened at second 3 or second 50 of the window.
A candle tells what happened, not the exact path.
A long lower wick = lower prices were tested and rejected. A long upper wick = higher prices were tested and rejected. The body shows the net result the window settled on.
“This candle went straight up.”
“This candle closed up, but that lower wick says price got sold down first and buyers rejected it — I can't assume a clean straight path.”
A green candle has a long lower wick. What does the wick most likely tell you?
- One candle is a summary, not a path.
- Lower wick = lower prices tested and rejected; upper wick = higher prices tested and rejected.
- Never assume the intrabar path from a single candle.
Up next — If a candle only makes sense in context, what's the single most important context? Next: acceptance vs rejection.