Candlestick charts are one of the most important tools in technical analysis. They show us how the price moved over a specific time period, and they contain key info about market psychology.
Each โcandleโ represents:
Open: The price at the start of the time period
Close: The price at the end of the time period
High: The highest price reached
Low: The lowest price touched
๐ธ Candle Colors:
๐ฉ Green candle = Price closed higher than it opened (bullish)
๐ฅ Red candle = Price closed lower than it opened (bearish)
Each candle can represent 1 minute, 1 hour, 1 dayโฆ depending on the timeframe you choose.
๐ธ Candlestick Meaning:
Candles form patterns that help traders understand what buyers and sellers are doing.
Example:
Long green candle = strong buying pressure
Long wick on top = price was pushed up but rejected
Series of small candles = low volatility or indecision
๐ With practice, candlesticks help you predict market behavior and time your trades better.
