Read candlesticks as a record, not a prediction.

The body and the wicks

The body shows the relationship between the opening and closing price for the chosen period. Wicks show where price moved outside that range before the period ended. Both describe what happened; neither settles why it happened.

Direction is not a forecast

A period that closes above its opening price is commonly described as positive, while one that closes below it is commonly described as negative. Those labels do not determine the next move, the strength of a trend, or the effect of new information.

Where the candle appears matters

Consider a candle alongside the market’s recent range, relevant price areas, time of day, liquidity conditions, and any scheduled information that could change participation. The same shape can mean very different things in different conditions.

Keep uncertainty in the notes

Charts can change quickly when news, changing liquidity, or broad market repricing arrives. Instead of treating a pattern as a trigger, write down the context that supports the observation and the information that could weaken it.