If you opened the chart and saw a bunch of green and red 'sticks' — congratulations, you are already familiar with candles. It's not scary. I'll explain what is what.
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📌 What is a candle anyway?
Each candle represents everything that happened to the price over a specific time interval.
For example, 1 candle on the 15m chart shows what happened to the price over 15 minutes.
A candle always shows 4 things:
Open — at what price the candle opened
Close — at what price it closed
High — maximum during this time
Low — minimum during this time
That's all. It's not difficult, right?
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🔺 Green or 🔻 Red?
Green candle — price increased during the period
Red candle — price decreased
Color — just an indicator: up or down.
But the shape of the candle is more important. Let's figure it out.
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🔍 What a candle consists of
Candle body — the distance between the opening and closing price
Shadows (or wicks) — show where the price reached but did not hold
Example:
🟩 Green candle — opened lower, closed higher
🔴 Red candle — opened higher, closed lower
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🧠 What can be understood from the shape of the candle?
1. Candle with a long body and short shadows
👉 Strong movement — bulls or bears dominated
🟩 Green — strong growth
🔴 Red — strong decline
2. Candle with a short body and long shadows
👉 A lot of fluctuations, but the price returned almost to where it started
📉 Often signals indecision
3. Doji — a candle with almost no body
👉 Opening price ≈ closing price
📍 Balance of power: neither buyers nor sellers won
⚠ May signal a reversal (depending on the context)
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🤓 What about combinations?
One candle is just a frame.
But several candles are already a whole movie.
Some combinations give important signals: 'absorption', 'hammer', 'harami' and others — we will cover in the second part.
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📌 What should a newbie look for?
1. Don't rush to conclusions based on one candle
2. Look at which candles repeat and how the price reacts to them
3. Remember: candles reflect people's behavior in the market. Behind each one is someone's emotion — fear, excitement, hope
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🔜 In the next article we will discuss:
Candle patterns that actually occur
How they hint when to enter or exit
And why without context even a beautiful candle is just a candle
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🧡 Let the candles speak to you in a language you understand
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