The world of technical analysis of financial markets, the concept of candlestick or Japanese candles plays an important role in predicting price movements. Candles are used as visual tools to display market behavior over specific time frames (such as one minute, five minutes, daily, etc.).

To understand how a candle is formed, we first need to pay attention to the structure and information contained in each candle. Each candle consists of four main parts:

1. Opening price (Open): The price at which a financial instrument (such as a stock or cryptocurrency) begins to trade at the start of a time frame.

2. Closing price (Close): The price at which the financial instrument closes at the end of the time frame. Images