"Binance candlestick is a way to understand price movement in financial markets, especially in the cryptocurrency world. Japanese candlesticks are used to display price data over different time periods (such as a minute, hour, or day). Here's what you need to know about Japanese candlesticks and how to read them:
**Components of a Japanese candlestick:**
1-Body: The colored part. If the candlestick is bullish (the price closed higher than the opening price), the body is usually green. If it is bearish (the price closed lower), the body is red.
2-Wicks: The thin lines that indicate the highest and lowest prices during the candlestick period.
3-Open price: The price at the start of the period.
4-High price: The highest price the market reached.
5-Low price: The lowest price the market reached.
6-Close price: The price at the end of the period.
How to read Binance candlestick:
- Bullish candle: It means that the price closed higher than the opening price, indicating a rise in the market.
- Bearish candle: It means that the price closed lower, indicating a Market down.
- Body length: reflects the strength of the trend – long body means greater strength, short body may mean hesitation.
- Long tails: indicate strong pressure on prices, indicating strong resistance or support.
Using candles, traders can analyze the market and make good investment decisions.
