Today we will talk about the Japanese candlestick method, which is one of the most important methods that help you determine the market direction. Japanese candlesticks are one of the most famous tools of technical analysis in trading digital currencies (and others like stocks and forex). They help traders understand price movement in a visual and easy way. Let me explain it to you simply: » What are Japanese candlesticks? A Japanese candlestick represents price movement over a specific time period (for example, 1 minute, 1 hour, 1 day, etc.). Each candlestick shows: Opening price (Open) Highest price reached (High) Lowest price (Low) Closing price (Close) » Shape of the candlestick: The thick part (body): the difference between the opening and closing prices. The thin lines above and below (wicks or tails): represent the highest and lowest prices reached during the period. If the closing price is higher than the opening → the candlestick is bullish (usually green or white) If the closing price is lower than the opening → the candlestick is bearish (usually red or black) » How can I benefit from it? Candlesticks give you an idea about market behavior and whether buyers (bulls) or sellers (bears) are in control. There are certain patterns that can help you predict the upcoming price direction. Examples of famous patterns: » 1. Hammer candlestick: It appears at the end of a downtrend Small body and long lower wick Indicates a potential reversal and rise » 2. Hanging Man candlestick: Same shape as the hammer but appears after an uptrend Could indicate the beginning of a downtrend.