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Japanese candlesticks: bodies, wicks and context

Candles show who won each session: candle anatomy, the key signal patterns and why context matters more than shape.

Anatomy of a candle

Each candle has an open, close, high and low. The body shows the open–close difference; the wicks show how far price went before being pushed back. A long body means one side dominated; a long wick means the other side fought back.

Key signal patterns

DojiOpen and close almost equal: indecision, worth noting after a long move.
Hammer / pin barA lower wick 2–3 times the body at the end of a decline: sellers were rejected.
Shooting starA long upper wick at the end of a rally: buyers were rejected.
EngulfingThe second body covers the first, opposite colour: a strong change of control.
Morning / evening starA three-candle reversal at a low / high.
Three soldiers / three crowsThree long candles of the same colour in a row: a strong new trend.

Context decides everything

  • A hammer in the middle of a range means little; the same hammer at daily support after a long decline is worth attention.
  • Always wait for the candle to close before judging it.
  • Higher-timeframe candles (H4, D1) carry more weight than lower-timeframe ones.
TipGorila's Technicals page illustrates 12 candle patterns with their bullish or bearish bias.

Try it on a chart

Educational content only, not investment advice. Practise on a demo account before using real money.