Family, reading candlestick charts (or Japanese candlestick charts) is fundamental for analyzing price behavior in financial markets, such as cryptocurrencies, stocks, or forex. Here I explain clearly and simply how to do it:

What is a Japanese candlestick?

A candlestick represents the price movement over a specific period of time (for example, 1 minute, 1 hour, 1 day, etc.).

Each candlestick shows four key prices:

1. Opening price (Open)

2. Closing price (Close)

3. Highest price (High)

4. Lowest price (Low)

🕯 Structure of a candlestick

Body: shows the difference between the opening price and the closing price.

Wicks or shadows: thin lines indicating the highest and lowest prices reached during that time.

Color:

🟩 Green (or white): the price went up (close > open).

🟥 Red (or black): the price went down (close < open).

Example:

Bullish candlestick (green):

Open: $100

Close: $120

Low: $95

High: $125

This indicates that the price rose during that period.

🔍 How are they interpreted?

1. Trends: Several green candles indicate a bullish trend. Several red candles indicate a bearish trend.

2. Long candles: Indicate strong pressure (buying or selling).

3. Small candles (doji type): Indicate indecision in the market.

🔥 Tips for reading candles:

Use different time frames (1h, 4h, daily) to have better context.

Combine with other indicators such as volume, RSI, or moving averages.

Learn to recognize candle patterns (such as hammer, engulfing, shooting star), which give signals of possible trend changes.

Blessings and success.

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