What do Japanese candlesticks represent?
Japanese candlesticks represent, in addition to price movement, the sentiment that existed during that time period.
The sentiments are: greed when we see a rise in prices with large green body candlesticks, fear when we see a drop in prices with large red body candlesticks, and uncertainty when we see small candlesticks or indecision candles. Reading Japanese candlesticks along with their price context is much more powerful for making entry or exit decisions.
It is also important to understand that each Japanese candlestick indicates a battle between buyers and sellers, and you will see these sentiments reflected on every occasion. If large consecutive green candlesticks start forming indicating euphoria, people will want to join the feast, but it is not a good idea to be part of the crowd that moves out of emotion. It is better to be the patient person who waits for the ideal moment, which is to buy when everyone wants to sell and sell when everyone wants to buy.
