Section 3 · Chart Reading
What is a Candlestick?
The Japanese invention that reveals four prices in one symbol.
One candle contains four prices and tells one story.
OHLC: Open, High, Low, Close. The body = distance from open to close. Wicks = high and low extremes. Green = closed above open. Red = closed below open.
3 things to know
Invented in Japan in the 1700s by rice trader Munehisa Homma.
Body = distance from open to close. Wicks = temporary price extremes.
Small body + long wicks = indecision. Neither buyers nor sellers won.
Key vocabulary — tap each card
Practice
Candlestick anatomy
Green body = closed higher than opened. Wicks show rejected extremes.
Did you know?
Munehisa Homma reportedly made the equivalent of $10 billion in today's money trading rice futures using candlestick patterns and crowd psychology. He recognized that price is driven by emotion, not just supply and demand.