Interpreting candles (or "candlesticks") in the crypto market (or any other financial market) is an essential skill in technical analysis. Each candle provides information on price movements during a given period. Hereâs how to read and interpret them effectively:
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đ 1. Structure of a candle
Each candle represents 4 key pieces of information over a given period (1 min, 1h, 4h, 1d, etc.):
Open: the opening price
Close: the closing price
High: the highest price reached
Low: the lowest price reached
Example:
High
â
â
ââââŽâââ â Body (between Open and Close)
â â
ââââŹâââ
â
Low
Green candle: close > open (upward)
Red candle: close < open (downward)
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đ 2. Interpretation of candle shapes
Some individual candles give strong signals:
Candle shape Meaning
Marubozu Candle without wick (strong pressure from buyers or sellers)
Doji Open â Close â market indecision
Hammer Rejection of a support â bullish signal
Shooting star Rejection of a resistance â bearish signal
Engulfing Candle that engulfs another â possible reversal
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đ§ 3. Context = key
A single candle is never enough. Always consider:
The technical level: support / resistance?
The current trend: bullish, bearish, neutral?
The volume: a candle with high volume = stronger signal
The patterns of multiple candles (e.g., "morning star", "evening star", "three soldiers", etc.)
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đ 4. Examples of patterns to know
Pattern name Number of candles Signal
Bullish Engulfing 2 Bullish
Bearish Engulfing 2 Bearish
Morning Star 3 Bullish
Evening Star 3 Bearish
Three White Soldiers 3 Strongly bullish
Three Black Crows 3 Strongly bearish
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đ 5. Tip for trading candles
Watch key levels (e.g., old highs/lows, supports/resistances)
Wait for a confirmation (e.g., wait for a closing candle)
Combine with other tools: RSI, MACD, volumes, Fibonacci...
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I can provide:
a visual guide to the main candles,
an explanation of current charts (if you send me a screenshot),
or examples of concrete strategies based on candles.
