Candle Definitions and Examples

Quick Jump to
Parts of a candle
Hollow Candles
Filled Candles
Long bodied candles
Short bodied candles
Doji Candles
Marubozu Candles
Engulfing Position
Harami Position
Reading a Detail page


Candle Parts
Lets take a look at a candle. Click here to see an example. The candle on the left is called hollow. The one on the right is called filled. The wider section of the candle is called the real body. The narrower lines at the top and bottom are called wicks or shadows.

So what do these candle parts indicate?


Hollow Candles
Lets look at a hollow candle which represents a net gain for the candle period. Click here to see an example. For a hollow candle the bottom of the body is the opening price. The closing price is the top of the body. The top of the upper wick is the highest price traded. Similarly the bottom of the lower wick is the lowest price traded. From the top of the upper wick to the bottom of the lower wick is the trading range.


Filled Candles
Now lets take a look at a filled candle which represents a net loss for the candle period. Click here to see an example. It is much the same as a hollow candle except because a filled candle represents a net loss, the open is at the top of the candle body and the close is at the bottom of the candle body.

Some candles are long bodies, some are short bodies, and some have no real bodies at all. These last are called doji. Some candles have no wicks at all. These are marubozu.


Long Bodied Candles
What do we mean by a long body? This is where the real body is materially longer than the wicks. Click here to see an example.


Short Bodied Candles
What do we mean by a short body? This is where the real body is about the same length as the wicks. Click here to see an example.


Doji Candles
A doji is a special candle that has no, or a very, very small real body that is one or two price ticks in thickness. Doji represent a period of indecision and an inability to move the price higher or lower at the close. Click here to see some doji candles.

The small, hollow and filled doji have real bodies thick enough to show an uptick of three price ticks or more.

The four-price doji is also a marubozu, because it has no wicks. The name four-price comes from the open, high, low, and close being the same price.

There are three other doji varients. Click here to see them.

The Dragonfly Doji has no upper wick. The Gravestone Doji has no lower wick. The Long Legged Doji has long upper and lower wicks.



Marubozu Candles
There is another special kind of candle called a marubozu and are identifiable because they have no upper or lower wicks. Click here to see an example.


Two Positions
There are two words that describe candle positions.


Engulfing Position
Engulfing means one candle's real body extends higher and lower than the preceeding candle's real body. The wicks do not have to overlap. One of the two candles must be hollow, the other one filled. The first candle may be a doji. Engulfing patterns may be found on the alphabetical listing in the Es. There must be a clear trend for engulfing patterns to apply. Applying the pattern in trendless market is fraught with peril.


Harami Position
Harami is somewhat the inverse of Engulfing. The second candle's real body is encompassed by the first candle's real body. The second candle can be a doji. Body within body, not necessarily wick within wick. Harami patterns may be found on the alphabetical listing in the Hs.


Reading a Detail page
Starting from the top of a detail page, we have the image showing the pattern. If the pattern is in an uptrend there is an arrow in the lower left corner pointing to the upper right. If the pattern is in a downtrend there is an arrow in the upper left pointing to the lower right. In the case of a no trend pattern both arrows are present.

There may be hollow, filled, doji
and marubozu candles. A candle with black and white vertical stripes (may appear grey on some screens) indicates a candle which may be filled or hollow.

Formation Title
The title of each formation appears just under the image. The last line of the title is two words. The first word is either "Bearish" or "Bullish".

When we say "bearish" we mean the implications of the pattern are bearish.

The second word is either "Reversal" or "Continuation". Reversal means the current trend may be reversed. Continuation means the current trend may be continued.

"Bullish Continuation" means the current trend may be continued and the implications are bullish.

"Bearish Reversal" means that the current trend may be reversed and the implications are bearish.

It does NOT mean a bearish trend will be reversed.

Interpretation
What the candle means.

Similar or Inverse Patterns
Here are links to patterns that are similar or inverted from the one shown at the top of the page. Some of these patterns may also be mentioned in the interpretation or recognition guidance sections.

Recognition Guidance
A narrative on how to recognize this pattern. May include similar patterns as shown above.

Links
The two most frequently links are included at the bottom of each page so you can quickly find another pattern or start over.

Legal
Lastly the copyright notice, a link to the copyright, trademark, disclaimer and some other stuff. Be sure and read it.


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CandleStick Companion
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