📊 DAY 9: How to read charts. The language of Japanese Candlesticks
For an investor, the chart is the treasure map. But to read it, you first need to understand its basic unit: The Japanese Candle (Candlestick).
Why do we use candles instead of simple lines? Because a single candle gives us 4 key data points at a glance.
🕯️ Anatomy of a candle
Each candle represents a period of time (it can be 1 hour, 1 day, etc.). It consists of two parts:
The Body (The thick part): It tells us the price at which it "opened" (started) and at which it "closed" (ended) the period.
The Wicks or Shadows (The thin lines): They indicate the maximum and minimum price that the coin reached during that time, even if it did not stay there afterward.
🟢 The Green Candle (Bullish)
It means that the closing price was higher than the opening price. Buyers (bulls) won the battle, and the price went up.
🔴 The Red Candle (Bearish)
It means that the closing price was lower than the opening price. Sellers (bears) had control, and the price went down.
🧠 What do long wicks tell us?
If you see a candle with a very long wick upwards, it means that the price tried to rise significantly, but there was strong selling pressure that pushed it down. It is a sign of rejection.
Today's lesson:
Don't get overwhelmed looking at a thousand indicators. Start by understanding what the candles are trying to tell you. If there are many consecutive green candles with large bodies, there is a lot of buying strength. If there are long wicks above, the market is in doubt.
🔥 Tomorrow on Day 10: Time is relative. What is "Timeframe" and why does a 15-minute chart look different from a 1-day chart?
Open your Binance App right now, go to the BTC chart, and tell me: Is the last 1-day candle green or red? 👇
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