🕯️ What is a Japanese candlestick chart?
A Japanese candlestick chart is a type of financial chart that shows the price movement of a cryptocurrency (like Bitcoin) over a specific period of time — such as one minute, one hour, or one day.
Each candle represents 4 main things:
Opening price (where the price started)
Highest price
Lowest price
Closing price (where the price ended)
📈 Components of the Japanese candle
Imagine the candle looks like this:
High
│
┌─────┐
│ │ ← Body (between open and close)
└─────┘
│
Low
Body:
If the closing price is higher than the opening price → the candle is green (bullish) → buyers were stronger.
If the closing price is lower than the opening price → the candle is red (bearish) → sellers were stronger.
Shadows (Wicks):
The thin lines above and below the body show how much the price rose or fell during that period.
🟩 Example of a green candle (bullish):
Opening price at the bottom of the body.
Closing price at the top of the body.
Means: the price increased
High
│
│
┌─────┐ ← Close
│ │
│ │
└─────┘ ← Open
│
Low
🟥 Example of a red candle (bearish):
Opening price at the top of the body.
Closing price at the bottom of the body.
Means: the price decreased
High
│
┌─────┐ ← Open
│ │
│ │
└─────┘ ← Close
│
Low
