How to Read a Candlestick Chart Like a Pro?
Candlestick charts are one of the most powerful tools in crypto trading.
But many beginners don't understand what they're looking at.
Let’s break it down in simple terms: 👇
1. What is a Candlestick?
Each candle shows price movement over a specific time (1min, 1hr, 1d, etc.)
It has 4 main parts:
Open: Price when the candle started
Close: Price when it ended
High: Highest price reached
Low: Lowest price reached
2. Green vs Red Candles
🟩 Green Candle = Price went up (Close > Open)
🟥 Red Candle = Price went down (Close < Open)
The body shows the open-close range.
The wicks (shadows) show how far price moved up/down during that time.
3. Why Do Candles Matter?
Candles tell a story about market sentiment — who’s in control: buyers or sellers?
Certain patterns can signal:
✅ Trend reversals
✅ Continuation
✅ Entry or exit points
4. Popular Candlestick Patterns
Here are a few every trader should know:
Doji: Market indecision
Engulfing: Possible trend reversal
Hammer: Bullish reversal (after downtrend)
Shooting Star: Bearish reversal (after uptrend)
(Practice identifying these on the chart)
5. Don’t Rely on Candles Alone
Candles are powerful, but they’re not magic.
Combine them with:
✅ Trendlines
✅ Volume
✅ Support/Resistance
For smarter, more confident trading.
Mastering candlestick charts takes time — but it's worth it.
The better you read price action, the better your decisions.
Start simple. Stay consistent.
