Guides · 3 min
Read a candlestick chart without guessing the future
A candle summarizes four prices over a period: open, high, low, and close. Its shape is not an automatic order. It gains meaning when compared with earlier candles and the area where it appears.
Read one candle
The body connects open and close. Wicks show prices visited and rejected before the period ended.
A long wick may show rejection, but later candles must confirm that the area is not accepted.
Move from candle to structure
Rising highs and lows describe progression. Overlapping candles suggest balance instead.
In OpenTrend, identify expansion, pullback, or compression before enabling a metric.
Compare volatility
Average candle size gives scale to the move. A stop suited to calm conditions may be too tight as range expands.
Timeframe changes detail, not the historical period observed in modes that support switching.
The long lower wick shows rejection. The next close above the area adds more information than the wick alone.
Common mistakes
- Naming every candle instead of reading the sequence.
- Treating one large candle as guaranteed continuation.
- Ignoring normal range when setting boundaries.
Before deciding
- 1 Is structure rising, falling, or balanced?
- 2 Is the move accelerating or losing range?
- 3 Is the latest wick confirmed by another close?
Quick questions
Is every green candle bullish?
It closed above its open, but that alone does not describe the whole structure.
Must I learn every pattern name?
No. Open, close, range, and context are more robust than memorizing labels.
Candles describe past prices. They do not guarantee any future move.
Keep learning
Practical reference material for understanding the mechanics used in OpenTrend.