Section 2 · Module 2.1
Charting Fundamentals
6 min readBullish (close > open) — long upper wick = rejection above; long lower wick = rejection below.
Candlestick Anatomy
Each candle uses Open, High, Low, and Close for a fixed timeframe. The real body spans open to close; wicks show rejection above (upper) or below (lower).
- Bullish: Close > Open — buyers controlled the session.
- Bearish: Close < Open — sellers controlled the session.
Timeframe Analysis
Intraday frames (1/5/15-min) suit day traders; daily and hourly frames suit swing holds.
Golden rule: Higher timeframes (daily, weekly) carry more structural weight than 1-minute noise.
Support & Resistance
Support is a demand floor where buying stalls declines. Resistance is a supply ceiling where selling caps rallies.
Broken resistance with volume often flips to support on later pullbacks (role reversal).
Knowledge check
A stock rallies to ₹1,500 resistance, spikes to ₹1,530, but closes at ₹1,485. What does this candle convey?