"Reading candles" in trading refers to interpreting candlestick charts, which are a common way of displaying price data for financial instruments like stocks, forex, or crypto. Each candle shows the price movement during a specific time period (e.g., 1 minute, 1 hour, 1 day).
Here’s a breakdown:
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🔍 Basics of a Candlestick
Each candlestick has four main components:
Open – The price at the start of the period
Close – The price at the end of the period
High – The highest price during the period
Low – The lowest price during the period
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🟩 Green Candle (Bullish Candle)
A green candle means:
The closing price is higher than the opening price.
Indicates buying pressure or bullish sentiment.
Shows the price went up during the candle’s time frame.
Example:
If a 1-hour candle opens at $100 and closes at $105, with a high of $107 and low of $98:
Green candle body from $100 to $105
Wick/shadow from $105 to $107 (high) and $98 .$BNB