Definition
A candle’s body spans its open and close, while its wicks extend to the interval’s high and low. Color or fill usually indicates whether the close is above or below the open, but chart settings and regional conventions can differ.
How It Works
For hypothetical prices open 100, high 110, low 95, and close 105, the body spans 100–105 and the wicks reach 95 and 110. This upward candle still contains a price below its open. Until the interval ends, its close and shape can continue changing.
Key Considerations
A candle compresses many trades and does not reveal whether the high or low happened first. Its color does not count buyers or prove the next move. Compare it with surrounding candles, timeframe, and volume; a familiar shape alone is not a reliable trading instruction.