Reading the Price Chart & Patterns Panel
Candlestick anatomy, reversal candles, and how to use the platform's Patterns panel
Every chart is a battle record between buyers and sellers. Candlesticks compress that battle into shapes you can read at a glance: who controlled the range, who got rejected at the highs or lows, and how decisive each session was. A candlestick is one period of trading compressed into a body and two wicks.
The body runs from open to close. The upper wick reaches to the period's high, the lower wick to its low. Color tells you the direction: green if the close was above the open, red otherwise.
Long body = decisive session, one side won clearly. Tiny body (a doji) = indecision. Long upper wick = price ran higher then got slammed back; sellers won the late part of the period.
Long lower wick = sellers pushed price down then got reclaimed; buyers won the late part.
That is the opening. Finishing a lesson is where it stops being interesting and starts being useful: the full lesson runs to 6 sections and ends with 4 practice questions. A free account is what opens the rest, and the other 255 lessons in the Academy with it. No card.
What this lesson covers
- 1What the Shape Tells You
- 2Five Reversal Candles Worth Memorizing
- 3The Location Rule
- 4Candle Geometry & Common Reversal Definitions
- 5Real-world: 2009 Inverse Head-and-Shoulders Bottom
- 6Summary