What information does one candlestick contain?

For a defined market-data feed and interval, a candle records the open, high, low, and close. Its body represents the open-to-close relationship and its wick represents the high and low; colors are software settings, not a measurement of who controls the market.

Does a hammer, doji, or other named candle predict the next move?

No. A named candle is a description of selected OHLC geometry. It does not prove participant intent or guarantee reversal, continuation, liquidity, or an executable trade outcome.

Which timeframe is best for reading candles?

There is no universally best timeframe. The interval, venue, contract, timezone, price field, and whether a bar is complete all change the observation. State them before comparing candles or testing a claim.

Crypto Candlesticks: OHLC Records, Not Buy or Sell Signals

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Fundamental Analysis

4 min

Crypto Candlesticks: OHLC Records, Not Buy or Sell Signals

Learn what a candle records, how interval and venue choices change a chart, and why a named pattern is a testable label rather than a prediction.

CryptoLV EditorialEditorial team

Updated August 17, 2026·4 min read

Track: Foundations·Lesson 10/19View track

#candlesticks #OHLC #technical analysis #chart data #risk management

Read the Four Fields First
Interval, Venue, and Completion Change the Candle
Pattern Names Need Rules
Test a Pattern Claim Without Hindsight
Safer Chart Checklist
Bottom Line

Review and sources

Reviewed 2026-08-17 by CryptoLV Editorial. Next review: 2026-11-17.

CME Group: chart types and OHLC fields opens in a new tab
Supports: Candlestick charts represent the open, high, low, and close for a defined period; body and wick are visual encodings of those fields.
CFTC: commodity trading systems sold on the internet opens in a new tab
Supports: Technical analysis uses historical price relationships; hypothetical results can omit execution and no trading system guarantees profits.
CFTC: virtual-currency trading risks opens in a new tab
Supports: Virtual-currency trading can involve volatility, platform, manipulation, cyber, and leverage risk regardless of chart interpretation.

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CryptoLV EditorialEditorial team

CryptoLV editorial content is reviewed against the linked primary sources. Check the source section for each guide's scope, reviewer, and next review date.

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