A candle, and what it hides

The basics · OnlyTrade trading school

One candle is four numbers over one slice of time: where the period opened, the highest and lowest it traded, and where it closed. The body is open-to-close, the wicks are the rest. What it hides is the ORDER of events — a long lower wick says price was rejected down there, but not whether that happened in the first minute or the last. That is why the same hour looks like conviction on a 1h chart and like a fight on a 5m one, and why a setup should be checked on at least one timeframe below the one you found it on.

About this lesson

Written by the OnlyTrade team as a general explanation of a market mechanic. It uses no live market data.

Education, not investment advice. No method or result is guaranteed, and trading can lose money. Read the Risk Disclosure.

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