Candlestick Anatomy: Master the Secret Language of Price Action
In the world of trading, price isn't just a number—it’s a story. If you want to understand who is winning the tug-of-war between buyers and sellers, you need to speak their language. At TradingPRO, we believe that mastering candlestick anatomy is the first step toward technical mastery.
Whether you are scalping forex or holding crypto, the candlestick is your most powerful visual ally. Here is how to deconstruct a candle and read the market’s hidden signals.
The Four Pillars of a Candlestick
Every candlestick tells a story of what happened during a specific period (e.g., 1 hour, 1 day). To read it, you must identify four key price points: Open, High, Low, and Close (OHLC).
1. The Real Body
The colored "block" of the candle is the Real Body. It represents the price range between the session's open and close.
Bullish Candle (Green/White): The price closed higher than it opened.
Bearish Candle (Red/Black): The price closed lower than it opened.
2. The Shadows (Wicks/Tails)
The thin lines poking out of the top and bottom are the Shadows. These represent the price extremes during the session.
Upper Shadow: Shows the highest price reached.
Lower Shadow: Shows the lowest price reached.
Decoding the Message: Size Matters
Understanding the "language" of price means looking at the proportions of the anatomy. Here is what the market is whispering to you:Understanding the "language" of price means looking at the proportions of the anatomyWhy "Wick Logic" is Your Best Friend
At TradingPRO, we often tell our community: "The wick is the lie the market told before it found the truth." A long wick indicates a failed attempt. If you see a long wick sticking out of a resistance level, it’s a sign that the "language" of the price is shifting from bullish to bearish. This "rejection" is often the precursor to a trend reversal.
Level Up Your Strategy with TradingPRO
Learning the anatomy is just the beginning. To truly trade with an edge, you need to see how these candles form patterns like Engulfing, Hammer, or Shooting Stars in real-time.
Ready to turn these visual signals into profit? Join the TradingPRO community to access advanced charts, real-time sentiment analysis, and expert breakdowns that help you trade what you see, not what you feel.
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