Reading room · Technical analysis guides · Published 2026-11-10

Reading a candlestick

One candlestick shows four prices for a period: open, high, low and close.

Confirmed facts

• The thick body runs from the open to the close. The thin lines (wicks) reach to the high and the low.
• If the close is above the open the period was up; if below, down. Colour conventions vary by chart.

Historical data

• A long lower wick means price fell during the period but buyers pushed it back up before the close.

Interpretation

• Traders read patterns of several candles as clues about buying and selling pressure. Patterns are probabilities at best, and many fail.

Sources

• NSE: Market basics

Educational content, not advice. Disclaimer