Candlestick Basics Pdf May 2026

: Indicates the highest price reached during the period.

: The price closed lower than it opened. Shadows (Wicks) : The thin lines extending from the body. Candlestick Basics Pdf

This guide covers the fundamental components of Japanese candlesticks and essential patterns to help you interpret market sentiment. For a deeper dive, you can refer to the foundational work in . 1. Anatomy of a Candlestick : Indicates the highest price reached during the period

: The price closed higher than it opened. This guide covers the fundamental components of Japanese

: A small body at the top with a long lower wick; signals a potential bullish reversal after a downtrend.

: The open and close prices are nearly identical, resulting in a cross-like shape that signifies extreme market indecision. Multi-Candle Reversal Patterns What are Candlestick Patterns? Insights and Tips - N26

Patterns are categorized by their signal: whether the current trend is likely to continue or reverse.