Level 2 · Lesson 3 / 15 · English
Candlestick Anatomy: Open, High, Low, Close
4 min reading · Exercises take additional time
0 of 15 lessons completed for this visit
A candlestick summarises an interval with four values. The body runs between the open and close; the upper and lower shadows extend to the high and low. Reading the numeric values is more reliable than assuming that all platforms use the same candle colours.
What you will learn
- Locate OHLC and body
- Calculate shadows and range
- Recognise invalid candle data
Illustrative educational chart · Not live market data
Body and shadows
Open is the first recorded price of the interval and close is the last, or latest if the interval is unfinished. High is the maximum recorded price and low the minimum. The body size is the absolute difference between open and close. Upper shadow is high minus the greater of open and close; lower shadow is the smaller of open and close minus low.
Range is different from body
The full range is high minus low. A small body inside a large range means the interval travelled away from its opening price and returned nearby. It does not reveal which extreme occurred first or prove that buyers and sellers traded equal amounts. Recorded highs and lows refer to the chart source and quote side, not guaranteed fills.
Validate before interpreting
Valid OHLC data requires high to be at least both open and close and low to be no greater than either. Missing or incorrectly ordered values produce impossible candles. On Forex charts, check whether bid, ask or a midpoint is plotted. A buy exit uses a sell price, so a chart high on another quote side is not sufficient evidence of an executable target.
Key terms
- Body
- The price interval between open and close.
- Shadow or wick
- The distance from the body to an interval’s high or low.
Hypothetical worked example · Not live market prices
Worked chart study · Candlestick Anatomy: Open, High, Low, Close
- Open 1.1000, high 1.1040, low 1.0980, close 1.1020.
- Body = 1.1020 − 1.1000 = 0.0020, or 20 conventional EUR/USD pips. Upper and lower shadows are each 20 pips.
- Full range = 1.1040 − 1.0980 = 0.0060 = 60 pips, not 20.
| Observation | Illustrative value / meaning |
|---|---|
| Open / close | 1.1000 / 1.1020 |
| High / low | 1.1040 / 1.0980 |
| Body / full range | 20 / 60 pips |
Simplified educational calculations. Costs, slippage and provider-specific adjustments apply where relevant; these are not actual returns.
Common mistakes to avoid
- Changing the stated chart rule after seeing the outcome instead of recording a new test.
- Treating a historical description as a guaranteed future result or ignoring execution costs.
- Skipping the timeframe, source or invalidation condition before drawing a conclusion.
Lesson summary
A candlestick summarises an interval with four values. The body runs between the open and close; the upper and lower shadows extend to the high and low. Reading the numeric values is more reliable than assuming that all platforms use the same candle colours. Use an explicit rule, consider contrary evidence and practise without risking real money.
Practical exercise
Draw and label this candle on paper. Change its close to 1.0990 and recalculate the body and both shadows.
Knowledge check
Check your understanding
Results apply to this attempt only and are not saved to a student account. No certificate is issued.
Answer all questions correctly and complete the exercise. Progress follows you between Academy pages for this visit only; it is not saved to an account and resets on reload.
Related lessons
Financial education, not personal investment advice. Leveraged Forex and CFDs can lead to substantial losses. Demo practice and correct quiz answers do not guarantee trading success.