Let’s make it simple
Imagine two tug-of-war rounds. One ends well away from the starting mark. The other ends almost at the mark. That is a helpful picture for the closing result, but we cannot see the actual teams inside a market candle.
Understand the idea
A candle with a large body and very short wicks is sometimes called shaven or marubozu-like. It closed near an extreme of its own range. That is a description of the finished period.
A doji has an open and close that are equal or very close. Its small body does not mean nothing happened: the high and low may be far apart. "Very close" is a judgement that depends on the market and scale.
Neither shape decides the next move. A strong-looking candle can fail to continue. A doji can be followed by a rise, fall or sideways movement. Do not label a doji as a guaranteed turning point.
Read exact candle values
| Candle | Open | High | Low | Close |
|---|---|---|---|---|
| A | 10 | 15 | 10 | 15 |
| B | 12 | 15 | 9 | 12 |
A small worked example
A: O=10, H=15, L=10, C=15. Its body and range are both 5. B: O=12, H=15, L=9, C=12. Its body is 0 but its range is 6.
Your turn
Draw A and B. Add a label explaining why A looks different from B. Invent three possible next closes for B: higher, lower and unchanged.
Compare your exercise with a model response
A has no wick and a body of 5. B is flat with range 6. Higher, lower and unchanged endings are all possible.
Pause & think
Check your understanding
Write an answer, then compare it with the explanation. This is self-study, not an automatically graded test.
Compare all three answers to unlock the review button.
Fictional examples. Education only; no pattern guarantees a result. Course information