🕯️ What do candles really say on a chart?
Candlestick charts are one of the most powerful and visual tools for analyzing price movement in the crypto world. Each candle represents a little story of what happened in the market during a specific period.
📌 Why are they called "candles"?
The name comes from their shape: a rectangle (the body) with a thin line above and/or below (the wick or shadow), as if it were a candle with a flame. This style originated in Japan over 200 years ago in rice markets, long before Bitcoin existed. 🍚💡
🧠 Quick mini glossary:
►Body: the wide part; shows the difference between opening and closing price.
►Wick (shadow): the thin lines; show the highest and lowest prices reached.
►Bullish candle: normally green; the price closed higher than it opened.
►Bearish candle: normally red; the price closed lower than it opened.
►Doji: opening ≈ closing; shows market indecision.
►Hammer: small body with a long lower wick; possible upward trend reversal.
►Shooting star: small body with a long upper wick; alert of possible decline.
🚀 Why are they so important?
📈 They help identify patterns and possible market turns.
🧠 They improve decision-making by giving you quick visual context.
📊 They are the basis of technical analysis for traders of all levels.
🧐 Fun fact:
In Japan, where they originated, it was said that candles "showed the market's emotion". So yes: each candle is like a micro-emotional story of the price. Pure drama in pixel form.
💬 Did you already know how to read candles or are you just starting?