The History of Candlesticks
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Candlesticks on charts tell a true story about market movements. They show how prices have behaved over a given period and reveal what is happening in the battle between buyers and sellers.
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🔥 What does a candlestick represent?
Each candlestick has a body and two wicks (thin lines). These elements together indicate price movement within a specific period:
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🟢 Green Candle (Bullish) – The price rose during the period.
🔴 Red Candle (Bearish) – The price fell during the period.
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The body of the candlestick shows where the price started (opening) and ended (closing). The wicks indicate how far the price went, both up and down, before coming back.
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📚 How to interpret?
1️⃣ Opening – Where the price started in the period.
2️⃣ Closing – Where the price ended in the period. 3️⃣ Maximum – The highest point the price reached.
4️⃣ Minimum – The lowest point the price reached.
If the body of the candle is large, it means that there was strong buying or selling pressure. If the wicks are long, this indicates that the market was indecisive, with a lot of price fluctuation.
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🔎 What does the image show?
The reference image shows a sequence of red candles, indicating a recent decline. However, the price touched the lower line of the Bollinger bands, suggesting that there may be an attempt to reverse soon. The last green candle, still small, shows that buyers are starting to react, but without much strength for now.
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💡 Tip for trading with candles:
Observing the formation of candles together with other indicators helps to predict changes in direction in the market. Once you understand this, you will begin to see opportunities where before you only saw meaningless lines and graphs. #velas #LucrosAgressivo #aprenda
