Anatomy of a candle
The body runs from the open to the close; the thin wicks mark the high and low. A green (or hollow) candle closed up; a red one closed down.
A long body signals conviction — one side dominated the session. A long wick signals rejection — price went there and got pushed back. That push-and-pull is the whole story a candle tells.
The few patterns that matter
You don't need fifty. A handful carry most of the signal:
- Engulfing: a candle whose body fully covers the previous one, hinting momentum has flipped.
- Pin bar / hammer: a small body with a long wick, showing one side tried to push and failed.
- Doji: open and close nearly equal — indecision, often near a turning point.
Context beats patterns
A pin bar at major support means far more than the same shape mid-range. Location is most of the edge — patterns at levels everyone watches carry weight; patterns in no-man's-land usually don't.
Patterns are probabilities, not guarantees. Confirm with the trend, the level and volume, and define your risk before you act — crypto's volatility produces plenty of false signals.