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Definition

Candle Sequence

A candle records open, close, high, and low — but not the order in which those extremes were reached.

Full Explanation
This is one of the most overlooked limitations of candle reading. A bullish candle with a long lower wick could mean price dropped first then reversed, or it could mean price rose first then dipped to form the wick before recovering. The candle looks identical in both scenarios, but the mechanics of what happened — and the implications for what comes next — can be completely different. When the sequence matters, the correct tool is a lower timeframe, which breaks the larger candle into smaller ones and reveals the internal structure of what occurred.
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What a Candle Is Actually Telling You
Most traders learned to read candles as signal generators. A hammer means potential reversal. An engulfing candle means momentum shift. A doji means indecision. Learn the shapes, recognize the patterns, place the trade.