The story inside each candle
Big bodies, tiny bodies and long wicks each tell you who won the tug of war.
Every candle is a mini story
Remember the tug of war between and ? Each candle tells you how that fight went during its period.
Four stories to know
Big green body, small wicks. Buyers were in charge from start to finish. Strong.
Big red body, small wicks. Sellers were in charge from start to finish. Strong the other way.
Tiny body (a ). Price ended about where it started. Buyers and sellers tied. Nobody won, so the crowd may be unsure what's next.
Long lower wick, small body near the top. Sellers pushed price way down, but buyers fought back and pushed it almost all the way up again. Buyers may be getting stronger.
One candle is not enough
A single candle is a clue, not an answer. A clue means more when it shows up in an important place, like a price where things turned around before. You'll learn about those places in the next level.
Remember
- Big body = one team won big.
- Tiny body (doji) = a tie.
- Long wick = price went there and got pushed back.
- One candle is a clue. Where it shows up matters.
Check yourself
1. A candle has a big green body and tiny wicks. Who won?
2. What is a doji?
3. Is one candle enough to make a trade?
You finished the written lessons in Sprout. Back to all levels
Money Tree School is education, not financial advice. Examples use made-up or historical numbers to show how things work; they are not recommendations to buy or sell anything. Markets can lose money.