Anatomy of a Candlestick
Every candlestick tells a story of the battle between buyers and sellers during a specific time period. The body shows the range between open and close prices. The wicks (also called shadows) show the highest and lowest prices reached. A green/bullish candle means price closed higher than it opened. A red/bearish candle means price closed lower.
什么 the Body Tells You
Large body: Strong conviction. Buyers (green) or sellers (red) dominated the period. This is what SMC traders call displacement — a sign of institutional participation.
Small body: Indecision. Neither buyers nor sellers could take control. Often seen before major moves as institutions accumulate before displacing.
什么 the Wicks Tell You
做多 upper wick: Buyers pushed price up but sellers rejected it. The longer the wick, the stronger the rejection. In SMC, this often marks a 流动性扫荡 above a key level.
做多 lower wick: Sellers pushed price down but buyers rejected it. This often marks a sweep of sell-side liquidity below a key level.
Key K线形态 for SMC
Engulfing candle: A large candle that 完整ly covers the previous candle. 看涨 engulfing after a downtrend 信号s reversal. This candle often becomes an order block in SMC.
Pin bar / Hammer: Small body with a long wick. Shows rejection of a price level. In SMC, pin bars at order blocks or liquidity levels are high-probability 信号s.
Doji: 打开 and close at nearly the same price with wicks on both sides. Shows 完整 indecision. At key SMC levels, a doji followed by displacement confirms the level.
Reading Candles Like Smart Money
Most retail traders memorize 模式 names. Smart Money traders read the story behind each candle: who is in control, where is liquidity being taken, and what is the institutional intent. Quantum Algo helps by highlighting the candles that matter — the ones showing institutional displacement, order block formation, and 流动性扫荡s.