Even beginners can understand candlesticks!

Basic components of candlesticks:

Opening price: The price at which trading begins for the day.

Closing price: The price at which trading ends for the day.

Highest price: The highest price within the day.

Lowest price: The lowest price within the day. Candlesticks consist of three parts:

Upper shadow: Above the candlestick, showing the range from the highest price to the closing price (or opening price).

Body: The range from the opening price to the closing price.

Bullish candle (red/white): Closing price is higher than the opening price, indicating an upward trend.

Bearish candle (green/black): Closing price is lower than the opening price, indicating a downward trend.

Lower shadow: Below the candlestick, showing the range from the lowest price to the opening price (or closing price). Interpretation methods for candlesticks:

Interpretation of a single candlestick:

Bullish and bearish candles: Bullish candles represent upward movement, bearish candles represent downward movement.

Size of the body: The longer the body, the stronger the market force.

Long bullish candle: Strong upward momentum; long bearish candle: Strong downward momentum.

Length of shadows: The longer the shadow, the more obvious the resistance or support.

Long upper shadow: Significant resistance to upward movement; long lower shadow: Support for downward movement. Interpretation of candlestick combinations:

Double bottom (W bottom): A signal of a reversal from downward to upward movement.

Double top (M top): A signal of a reversal from upward to downward movement.

Head and shoulders bottom: A pattern indicating a reversal to upward movement.

Head and shoulders top: A pattern indicating a reversal to downward movement.

Engulfing pattern: May indicate a market reversal.

Doji: Opening price = closing price, indicating balance between buyers and sellers.

High level: Possible peak; low level: Possible bottom.

Red three soldiers: Three consecutive bullish candles, indicating strong upward movement.

Three black crows: Three consecutive bearish candles, indicating weak downward movement (during an upward trend, this may signify accumulation of buying power).