🧵 Thread 16: What is a candlestick chart and how to read it on Binance?

If you are starting in trading, understanding candlestick charts is key. Here I explain the basics clearly and without complications. Let's go! 👇

1️⃣ What is a candlestick chart?

It is a visual way to show the price movement over a period of time. Each candle represents what happened with the price during that time (it can be 1 minute, 1 hour, 1 day, etc.).

2️⃣ Parts of a candle:

• Body: difference between the opening and closing price.

• Wicks (or shadows): indicate the highest and lowest prices reached.

• Color:

🟢 Green candle: the price went up.

🔴 Red candle: the price went down.

3️⃣ How to read them on Binance?

When you open a trading pair (e.g. BTC/USDT), you will see a chart. If you choose “Candles”, you will see these representations.

Example: green candle of 1h = during that hour the price went up.

4️⃣ Why is it important to understand them?

Because they show the battle between buyers and sellers. With practice, you can detect patterns that indicate whether the price might go up or down.

5️⃣ Simple example:

A candle with a large body and no wicks indicates a strong and decisive movement.

A candle with a small body and long wicks = indecision in the market.

6️⃣ Tip:

Don't obsess over a single candle. What matters is the context, the overall trend, and the patterns formed by several candles.

7️⃣ Useful tool:

On Binance, you can change the time frame of the chart (1m, 15m, 1h, 4h, 1d…) according to your analysis style.

📌 Conclusion:

Understanding candlestick charts is like learning to read the language of the market. It's not hard, but it requires practice. Each candle has a story. Study them!

Would you like us to talk about common candlestick patterns like hammer, doji or engulfing in the next thread?

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