If you want to understand what buyers and sellers are doing in real time, you must learn candlestick charts.
Candlesticks don’t just show prices — they show market psychology.
What Is a Candlestick Chart?
A candlestick chart shows four key prices:
- Open
- High
- Low
- Close
Each candlestick represents price movement for a specific time:
- 1 minute
- 5 minutes
- 1 day
- 1 week
Anatomy of a Candlestick
Each candle has three parts:
- Body – Distance between open and close
- Upper Wick – Highest price
- Lower Wick – Lowest price
- Green candle = Price went up
- Red candle = Price went down
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| Understanding Candlestick Charts for Beginners |
What Candlesticks Reveal
Candles show:
- Buying strength
- Selling pressure
- Market indecision
- Trend reversals
A long green candle = strong buyers
A long red candle = strong sellers
Common Candlestick Types
1. Doji
Open and close are almost same
Shows market indecision
2. Hammer
Small body, long lower wick
Signals potential trend reversal
3. Shooting Star
Small body, long upper wick
Indicates selling pressure
Why Candlesticks Are So Powerful
They tell you:
- Who is in control
- Where traders are trapped
- Where big players are buying or selling
This helps traders make smarter decisions.
Candlesticks vs Line Charts
Line charts hide information.
Candlesticks reveal full price behavior.
That’s why professional traders use candlestick charts.
FAQs – Beginner Questions
Q1. Are candlestick charts only for traders?
No. Even investors use them to find better entry points.
Q2. Which time frame is best for beginners?
Daily charts are easiest to start with.
Q3. Do candlesticks work in all markets?
Yes — stocks, crypto, forex, commodities.
Q4. Is one candlestick enough to trade?
No. Use patterns and confirmation.
Q5. Are candlestick patterns 100% accurate?
No. They show probability, not certainty.
Final Thought
Candlestick charts turn raw prices into
powerful visual stories.
Once you learn to read them, you stop guessing and start trading smart.
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