you see them all over the place they're on the screen right now but what do they actually mean in this video we're going to be doing a deep dive into Candlestick charts what they mean what the Wicks mean what the bodies mean and the colors all here in the next couple minutes all right let's just Dive Right on in so I'm gonna pull myself off the screen here in just a second and we're going to cover how to get here what the basics of a Candlestick chart are so that you are more informed about price action okay so let's pop off let's make this screen bigger and here we go so right now we're looking at spy is what we're going to use as our example what's the S P 500 ETF okay now we are on a platform called trading view okay this is a platform that can be free but if you want to use some of the more advanced features they do have paid versions and we are on a paid version you can still use and view Candlestick charts and the basic features of tradingview for free I will leave a link to trading view if you want to follow along with this exact platform in the video description box but you do not need to follow along with trading view you can open up your brokerage your brokerage platform of choice it could be Weeble it could be even Robin Hood these days Robin Hood actually now has candlesticks on their Advanced charts it could be TD Ameritrade it could be a whole list of other Brokers doesn't matter as long as you can get Candlestick charts that's all that matters on trading view or at the top of your platform somewhere along the top bar your platform there will be a section that has candles okay so I'm clicking up next to the time frames that I set here there is this candles option and I go to candles right here plain and simple there's a regular candlesticks we're not talking about the other ones yet but we will stick to the end and we'll have a brief discussion on both hikanashi and Hollow candles all right so now let's dissect the Candlestick chart first things first let's zoom in because we need to zoom this in so we can see this a bit better we have two things to talk about the body so the pure the part of the candle that's solid and then the wick this little piece that you can see that this very skinny section that extends out the top and out the bottom of these candlesticks okay now the body okay that we have right here for example this body this green nice green candle this body is indicating or shows essentially the difference from open to close now on a green candle this is very important on a green candle okay and you can customize the colors but on a standard green Candlestick the bottom of the body the bottom of the solid part is the open and the top of the solid part is the close okay for that Kindle now we are on a one day chart which means each of these candlesticks are one full day this could again be five minutes could be an hour depends on the time frame but the bottom of a green body candle is the open on that time frame and the top is the close on that time frame okay the Wicks indicate range so the bottom of the lower Wick is the low of the day or the low price traded during that time frame and the top of the wick on the upper end the upper Wick is the high of the day in this case on a daily chart or the high of that given time frame okay the highest price traded during that time frame okay when we see big lower Wicks big upper Wicks that can indicate buyers or sellers showing some more strength for example we saw some buyers showing some strength here on this candle as we had price action Trend or trade all the way down to the lower end of the wick on this red candle and then it ends up closing here now on a red candle it's the exact opposite of a green candle the top of the body the top of the solid part of the red candle is the open and the bottom is the close so the color of the candle is only determined if the open and the close or where the close is relative to the open so for example I'll say the next day here the Market opens just on a given day the Market opens right here okay this price and then it closes up here at this price well this is going to be a green candle and we're going to have something like this and maybe there's a wick up here and a wick down here right but this is going to be a green candle so if the market were to open let's say here and then close the same day or that time frame here it's going to be a red candle so I'm going to have a solid body that's red and then the Wicks will be the Wicks the Wicks don't really matter in this case all that really matters in terms of the coloring is the open and the close close is below the open red closes above the open green okay pretty straightforward it does not have to be very complicated now where it can get more complicated is when you take it a step further so we understand now that the bodies of candles right what they mean we know what the Wicks mean but what about Hollow and hikanashi now before I get into Hollow candles I do want to mention though that because this plays into Hollow candles a green candle does not mean that a stock was up that day compared to the next it just means that from open to close it was up for example right you can look back let's look back to the left here see if we can find a good example of this let me adjust this chart what I'm looking for is a situation where we have a green candle yet we pretty much were read on the day it's not very easy to find there's not a ton of them out there let's see if I can find one here you guys have it boom go back to this is March 13th 2023 what you're going to see is that look at this Candlestick right here this candle is green right but the day before the market closed right here price closed here the next day it opens here and closes here the close is still below the prior day close so we were technically down on this day on the 13th compared to the day before compared to the 10th which is the Friday before but the candle is green so just because a candle is green doesn't mean that the market was up that day when looking at a daily chart if I were to now go over top of the screen go to candlesticks go down to hollow candles watch this kennel watch this one right here March 13th watch this one now it's red but now it's dark Hollow and then it has the red outline so now when we're talking Hollow candles here's where it gets a little more confusing Hollow candles are where we have price pushing up from open to close and then the coloring of the candle depends on the prior candles close okay let's unpack that so solid down solid means down Hollow means up okay so this is where green and red don't really matter you can make different colors out of this if you wanted to um it's up to you but this day right Market opens here closes here solid red okay the colors actually mean compared to the prior day so as long as the close of one candle is lower than the close of the prior candle that candle is going to be red if the clothes of one candle or a given candle for example let's say this guy right here this is where it closed is above the close of the prior candle that candle will be green solid is down a hollow is up so we have right here is an example of some of these green Candles now what these green candles show us is that price closed here price then the next day closes here because it's a solid candle on a solid candle that's showing us price trending down from open to close that day or that in that candlestick yet the close of this candle on the 27th of March was above the close of the 24th of March that's why it's green okay so that's the difference when it comes down to solid versus Hollow candles personally I don't really care too much about the difference here in terms of what I prefer Hollows or what I prefer regulars I I know what they mean and I know how to read them and so to me it just comes down to personal preference if you like being able to pull more information out of the chart maybe having Hollow candles and solid camos works best for you if not then maybe just regular candlesticks are good next piece here is going to be hiking Ashi now here's hikanashi it's going to look way different okay High ganache is actually using more of a trend and a calculation involved and so what haikanashi does a good job of is depicting Trends and so inside of this all these candles are green right here right but inside of this there were some days where the market was red right but the hiking Ashi calculation still is showing Trend to the upside and the same thing inside of this move to the downside so hike and Ashley we've actually got some videos going deeper into hikanash if you want to learn more about them check out our Channel and just type in hikanashi in the search bar of our home page but at a minimum this is going to give you more of a trend approach and a good way to tell where the market is trending and ironing out and blending out some of the noise and the ups and the Downs uh that might that you might see along the way and many of those end up being minor ups and downs anyway so okay with that said now you have a good understanding of what candlesticks mean what they tell you and then how you can potentially use that now in your own favor so with that said I do want to mention one thing if this information was awesome or it was easy to digest you got it if you want to dive deeper than candlesticks there's actually a platform out there it's called bookmap and bookmap is able to dive and go beyond the candlesticks showing you things like liquidity heat Maps where buyers are stacking up where sellers are stacking up aggressive buyers and sellers where the majority of Market buyers or sellers are and what side of the trade they have been on throughout a given time period all that information is even better in my opinion than just candlesticks so if you want to level up your game and you've got candlesticks mastered check out bookmap I'll leave a link down below this video to book map if you want to check them out get set up and understand what's going on behind the candlesticks to really understand price action and where movements how movements start and where movements may continue to go given all that information thanks so much make sure you are subscribed here to the channel consider it a thumbs up button and I will see you guys in the next video peace foreign foreign