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Back to Masterclass Index
Lesson 41 of 100•Chapter 05
Price Action Core• 5 mins Read•Level: Beginner

1. Candlestick Anatomy: Decoding OHLC & Wick Rejections

Part of Chapter 05: Technical Analysis Foundations & Candlestick Anatomy

RD
BitcoinCrypto Quantitative Research Desk
Curated & Audited by Zeeshan Ahmed & Elena Rostova
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Core Learning Concepts
  • Open, High, Low, and Close (OHLC) auction dynamics
  • Body size as an indicator of aggressive market momentum
  • Upper and lower wicks as visible evidence of aggressive price rejection

Originating from 18th-century Japanese rice merchant Munehisa Homma, candlestick charts display four critical data points for any given time interval: the Open, High, Low, and Close (OHLC).

The solid candle body represents the final net price change between the open and the close. A tall, full-bodied green candle proves that aggressive market buyers dominated the entire session without facing substantial limit sell resistance.

The wicks (shadows) represent intra-session extremes where price pushed, encountered opposite liquidity, and was forcefully rejected. A long upper wick at a key resistance level reveals aggressive sellers stepping in to absorb buying volume, indicating potential exhaustion.

Institutional Execution Insight

Never trade a candlestick until the candle has officially closed. An intraday candle can look like a massive bullish engulfing with 1 minute remaining, only to turn into a long-wick shooting star right at the close.

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Primary Research & Verified Institutional Citations
TradingView Charting Engine & Pine Script Algorithmic Framework
TradingView Financial Data • Primary Source
CFA Institute: Technical Analysis Principles & Market Behavior
CFA Institute Global Curriculum • Academic
Japanese Candlestick Charting Techniques: Auction Theory
Steve Nison Research • Primary Source
Wyckoff Method: Accumulation, Distribution & Composite Operator Dynamics
Wyckoff Educational Foundation • Academic

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Chapter 04 • 6 mins
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2. The 3 Universal Market Phases: Accumulation, Markup, and Distribution
Chapter 05 • 6 mins

All Lessons in Chapter 05

Technical Analysis Foundations & Candlestick Anatomy (10 Lessons)

Full Syllabus →
1. Candlestick Anatomy: Decoding OHLC & Wick Rejections5 mins2. The 3 Universal Market Phases: Accumulation, Markup, and Distribution6 mins3. Support & Resistance Mechanics: The Power of the S/R Flip6 mins4. Multi-Timeframe Analysis (MTF): The Top-Down Master Workflow6 mins5. High-Probability Candlestick Patterns: Pinbars, Engulfings & Stars5 mins6. Trendlines & Parallel Channels: Valid Touches vs Retail Traps5 mins7. Classical Chart Patterns: Double Bottoms, Head & Shoulders & Triangles6 mins8. Dynamic Support & Resistance: The 20 EMA, 50 SMA & 200-Day Moving Average5 mins9. Volume Spread Analysis (VSA): Spotting Smart Money Absorption vs Churn5 mins10. The Execution Checklist: Validating a High-Confluence Technical Setup6 mins