"Every candlestick holds a secret — a battle between fear and greed. Learn to read them, and you'll stop guessing and start predicting. This is where beginners become pros."
Mastering Candlestick Charts: A Complete Beginner’s Guide
What is a Candlestick Chart?
A candlestick chart displays how the price of an asset moves over time.
Each candle shows 4 key price points:
Open: The price at the start of the time period
High: The highest price reached
Low: The lowest price reached
Close: The price at the end of the time period
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Candlestick Anatomy
Every candle has two parts:
Body: Shows the open and close price
Wicks (Shadows): Show the high and low price
Color matters:
Green/Bullish candle: Close > Open (Price went up)
Red/Bearish candle: Close < Open (Price went down)
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Timeframe Matters
Each candlestick represents a selected timeframe:
1-minute chart = 1 candle per minute
1-hour chart = 1 candle per hour
1-day chart = 1 candle per day
Choose timeframes based on your trading style (scalping, swing, or long-term).
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Popular Candlestick Patterns
1. Doji
Open ≈ Close
Signals market indecision
Can indicate a reversal or pause in trend
2. Hammer
Found at the bottom of a downtrend
Small body, long lower wick
Bullish reversal signal
3. Inverted Hammer
Upside-down hammer shape
Appears after a downtrend
Indicates possible trend reversal
4. Shooting Star
Appears after an uptrend
Small body, long upper wick
Bearish reversal signal
5. Morning Star
3-candle pattern at the bottom of a downtrend
Strong bullish reversal pattern
6. Bearish Engulfing / Bullish Engulfing
One candle completely “engulfs” the previous
Indicates strong momentum shift
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Why Use Candlestick Charts?
Easy to understand market psychology
Quickly spot reversals and trends
Works with support/resistance and indicators
Trusted by professionals worldwide
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Pro Tip: Always combine candlestick analysis with volume, trendlines, and indicators like RSI or MACD for better accuracy.
