What does a long lower wick indicate?

Buyers stepped in and pushed price back up. A long lower wick means price dropped significantly but buyers pushed it back up — rejection of lower prices.

A Doji candle indicates:

Market indecision. A Doji has nearly equal open and close, showing neither buyers nor sellers dominated — indecision.

In a green (bullish) candle:

Close is above open. A green/bullish candle closes above its opening price, indicating upward movement.

Courses / Trading Fundamentals

Reading Candlesticks

The language of price action

Japanese candlesticks are the most popular chart type used by traders worldwide. Invented in 18th century Japan for rice trading, each candlestick displays four critical price points: Open, High, Low, and Close (OHLC).

The body of the candle represents the range between the open and close prices. A green (bullish) candle closes above its open, meaning price went up during that period. A red (bearish) candle closes below its open, meaning price went down.

The thin lines above and below the body are called wicks (or shadows). The upper wick shows the highest price reached. The lower wick shows the lowest price reached. Long wicks indicate strong rejection of those price levels.

Special candles to know: - Doji: Open and close are nearly equal, showing indecision - Hammer: Small body with long lower wick at support (bullish) - Shooting Star: Small body with long upper wick at resistance (bearish) - Marubozu: Full body with no wicks, showing strong momentum

Pro tip: Focus on candles at key support/resistance levels — they matter most there.

Pro tip: A single candle means nothing without context. Always look at surrounding candles.

Pro tip: The higher the timeframe, the more significant the candlestick pattern.

Common mistake: Trading every hammer or doji you see. Better: Only trade candlestick patterns at significant support/resistance levels.

Common mistake: Ignoring the wicks and only looking at the body. Better: Wicks tell you about rejection and are often more informative than the body.

Key takeaways

Each candle shows Open, High, Low, Close
Green = bullish (close > open), Red = bearish (close < open)
Wicks show price rejection at extreme levels
Doji = indecision, Hammer = bullish reversal, Shooting Star = bearish reversal

Quiz

What does a long lower wick indicate? Answer: Buyers stepped in and pushed price back up. A long lower wick means price dropped significantly but buyers pushed it back up — rejection of lower prices.
A Doji candle indicates: Answer: Market indecision. A Doji has nearly equal open and close, showing neither buyers nor sellers dominated — indecision.
In a green (bullish) candle: Answer: Close is above open. A green/bullish candle closes above its opening price, indicating upward movement.

Educational content, not financial advice.