In the world of technical analysis

Candles refer to Japanese candlesticks (Candlesticks), which is a way to represent price movement on charts

What is a Japanese candle

A candle expresses the price movement of an asset like $BTC over a specific time period, for example, an hour, a day, a week

It consists of

The body: shows the difference between the opening and closing price

If the body is green/bullish, the closing is higher than the opening

If the body is red/bearish, the closing is lower than the opening

The upper and lower shadows (wicks) represent the highest and lowest price reached during the same period

Why are they important

Because the shape and pattern of the candles give us signals about market behavior, such as

Is there strong buying pressure

Is the price close to a collapse

Is there nearby resistance or support

In short, candles do not only show the price, but reveal market sentiments.