If you’re new to trading, candlestick charts are one of the most important tools you’ll use. Every candle tells a story about buyers, sellers, and market sentiment. Understanding candlestick formation and wicks will help you make better trading decisions.⬇️
A candlestick is a visual representation of price movement over a specific period, such as 1 minute, 5 minutes, 1 hour, or 1 day.⬇️
Each candle has four main components:
1. Open Price – Where the price started during that period⬇️
2. Close Price – Where the price ended⬇️
3. High Price – The highest price reached⬇️
4. Low Price – The lowest price reached ⬇️
Candlestick Body:
The body of the candle shows the difference between open and close prices . • Bullish Candle (Green/White) – Close > . Open Price moved upward⬇️
• Bearish Candle (Red/Black) – Close < Open Price moved downward⬇️
The body size indicates the strength of buyers or sellers:
• Large body → strong momentum⬇️ • Small body → weak momentum / indecision⬇️
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📘 Beginner’s Guide to Reading Trading Charts**
"This guide explains everything in simple language so beginners can read charts like a pro".
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📊What Is a Candlestick? Its Structure & Details:
If you’re new to trading, candlestick charts are one of the most important tools you’ll use. Every candle tells a story about buyers, sellers, and market sentiment. Understanding candlestick formation and wicks will help you make better trading decisions.⬇️
A candlestick is a visual representation of price movement over a specific period, such as 1 minute, 5 minutes, 1 hour, or 1 day.⬇️
Each candle has four main components:
1. Open Price – Where the price started during that period⬇️
2. Close Price – Where the price ended⬇️
3. High Price – The highest price reached⬇️
4. Low Price – The lowest price reached ⬇️
Candlestick Body:
The body of the candle shows the difference between open and close prices
.
• Bullish Candle (Green/White) – Close > . Open Price moved upward⬇️
• Bearish Candle (Red/Black) – Close < Open
Price moved downward⬇️
The body size indicates the strength of buyers or sellers:
• Large body → strong momentum⬇️
• Small body → weak momentum / indecision⬇️
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