One candle, four observations
Rising body · close above open
Session 1: O 100 · H 108 · L 97 · C 105
Match every part to a price
For a close above the open, the body’s lower end is the open and its upper end is the close. For a close below the open, those roles reverse. The complete high-to-low range includes the body and both wicks. A doji can have almost no body.
Our fictional completed session opens at $100, reaches $108, trades as low as $97 and closes at $105. The body is $5, the upper wick $3, the lower wick $3 and the complete range $11. Each length is calculated from the four prices rather than estimated from a picture.
Candle direction and daily return differ
Many displays color a candle according to close versus open. A daily price return usually compares the close with the previous close. A candle can therefore rise from its open while still finishing below the prior session. Some platforms use other coloring rules; read their legend.
Suppose the previous close was $110 before the fictional $100 open and $105 close. The candle rises $5 from its open, but the close-to-close price return is $105/$110 − 1, about −4.55%. Calling it a positive day solely from the body’s color would confuse two references.
Four prices do not reveal the whole path
The same open, high, low and close can arise from many transaction sequences. The high might occur before the low or afterward. The summary cannot identify who traded, why they traded or whether the middle of the session had one large swing or many smaller ones.
Changing a daily chart to weekly aggregates several sessions. The weekly open is the first eligible opening observation, its close the last eligible close, and its extremes cover the selected week. A pattern visible in daily bars need not appear in the weekly aggregation.
Learn measurement before pattern names
Read the body, wicks and surrounding prices before using a label. If the selected session is incomplete, its shape can still change. A thinly traded interval or a different session definition can also alter the appearance without revealing a new underlying economic story.
In later lessons, compare patterns using the numerical examples and note the preceding trend. The aim is to explain exactly what the chart summarizes and what evidence would change an interpretation. An isolated candle does not provide the company’s valuation, a guaranteed direction or an execution plan.
A candle opens at $100 and closes at $105 after a previous close of $110. Is its close-to-close return positive?
Show the explanation
No. It rises from its open, but its close-to-close price return is approximately −4.55%. Candle direction and change from the prior close use different reference prices.
Sources and editorial notes
Original explanations and hypothetical examples prepared with AI assistance. Primary references checked October 16, 2026. Numerical examples are hypothetical unless explicitly identified otherwise.
- StockCharts ChartSchool: Introduction to Candlesticks
OHLC body/wick construction, doji and spinning-top geometry and context. No third-party images or price histories reproduced.
- Fidelity: Advanced charts research help
Chart intervals, extended sessions, OHLC/candle settings and platform-dependent volume coloring.