વિષયસૂચિ · 6 / 24
Candlestick anatomy and context
અપડેટ 4 ઑગસ્ટ 2026 · 3 મિનિટનું વાંચન · 14 વિષયસૂચિ
Explore one OHLC candle
Change a valid open, high, low and close to see how the body and wicks are measured. These values are illustrative and are not market data.
- Body
- 4
- Upper wick
- 2
- Lower wick
- 2
- Range
- 8
સરળ ભાષામાં અર્થ
A candlestick draws one OHLC bar as a real body between open and close with wicks extending to high and low. Colour shows whether close finished above or below open; it does not by itself show whether the close rose from the previous session.
Learning objectives #
You should be able to calculate body, upper wick, lower wick and range, distinguish candle colour from close-to-close return, and explain why location and preceding trend are part of any pattern definition.
Core concept #
For O, H, L and C: body size is |C−O|, range is H−L, upper wick is H−max(O,C), and lower wick is min(O,C)−L. Ratios should be evaluated only when range is positive. A named shape needs explicit thresholds because visual labels such as ‘small’ are otherwise subjective.
Method and conventions #
Read a candle in layers: interval and session, direction from open to close, close-to-close change, body relative to range, wick asymmetry, gap from the prior close, preceding structure and reported volume. No single candle should be detached from those conditions.
Use it in XMarketRadar #
Use candlestick style and hover the bar to read exact OHLC rather than estimating pixels. Confirm the candle is complete, then compare it with earlier bars. Use glossary definitions for patterns and retain the detector's stated thresholds if an automated label is shown.
Worked example #
With O=100, H=106, L=98 and C=104, body is 4, range is 8, upper wick is 2 and lower wick is 2. It is an upward-coloured candle, but if the previous close was 110 the close-to-close return is still negative.
How to interpret it #
A long body suggests a large open-to-close move relative to that bar; a long wick shows rejection from an extreme before close. These are descriptions of the interval's path summary, not proof of buyer identity or future direction.
Limitations and common mistakes #
Do not infer the actual sequence of high and low from OHLC alone. Daily data cannot tell whether high occurred before low. Thinly traded bars, opening auctions and price-limit sessions can create shapes that resemble textbook patterns for structural reasons.
Market-specific differences #
Candle construction can differ when providers include auctions or extended hours. Tick size makes shape ratios coarse for low-priced securities, and 24-hour markets use provider-defined daily boundaries.
Key takeaway #
Key takeaway: candle geometry is measurable, but context supplies meaning. Always separate open-to-close colour from prior-close return.
Practice exercise #
Practice: calculate body and wick sizes for three completed candles and identify one whose colour and close-to-close direction disagree.
Educational use only #
This chapter is descriptive education. It is not investment advice, a price prediction, a recommendation, a claim of predictive accuracy, or an instruction to buy, sell, rebalance or place an order.