📊 Understanding a Japanese Candlestick on Binance
Japanese candlesticks (or candlesticks) are one of the most commonly used tools by traders to analyze the markets. On Binance, they allow you to quickly visualize the price movement of a cryptocurrency over a given period (1 min, 15 min, 1h, 1 day, etc.).
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1️⃣ Structure of a candlestick
Each candlestick provides you with 4 key pieces of information:
Open: the price at the beginning of the period.
Close: the price at the end of the period.
High: the highest price reached.
Low: the lowest price reached.
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2️⃣ The colors
Green (or white depending on the Binance theme) → the price has gone up (Close > Open).
Red → the price has gone down (Close < Open).
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3️⃣ Parts of the candlestick
The body: thick part, shows the difference between open and close.
The wicks (Wicks/Shadows): thin lines above and below the body, indicate the price extremes reached during the period.
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4️⃣ Quick reading
Large green body → strong buying pressure, bullish trend.
Large red body → strong selling pressure, bearish trend.
Small body + long wicks → market uncertainty (possible reversal).
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💡 Binance Tip: Use candlesticks on multiple time frames (for example, 1h and 4h) to confirm a trend before entering a position.
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