Candlestick charts are one of the easiest ways to read market sentiment.

Each candlestick shows how the price has moved within a specific timeframe.

🟩 A green body means that the price went up (closed above opening).

🟥 A red body means that the price went down (closed below opening).

🕯️ Wicks (the thin lines above and below the body) mark price extremes.

✔️ A long upper wick signifies selling pressure at the top.

Buyers pushed the price way up, though sellers didn’t let it stay there.

✔️ A long lower wick shows buying interest at lower levels.

Sellers dragged the price down, but buyers bounced it back up.

📌 Example

If an asset:

1️⃣ Opens at $50

2️⃣ Climbs to $55

3️⃣ Drops to $48

4️⃣ Closes at $53

You’ll see:

🟩 A green body from $50 to $53.

⬆️ A long upper wick to $55: Buyers pushed the price up, but sellers drove it back down.

⬇️ A long lower wick to $48: Sellers pushed the price down, but buyers bounced it back.

Feeling more comfortable with candlesticks now? Let us know in the comments.