A candlestick chart is a type of chart that clearly shows how the price of an asset (stock/crypto) has moved. It is the most commonly used chart in trading.
What does a candle mean?
Each candle gives price information for a specific time period (1 minute, 5 minutes, 1 hour, 1 day, etc.).
In a candle, it contains:
Open → Price at the start of the time
Close → Price at the end of the time
High → The highest price during that time
Low → The lowest price during that time
Part of the candle
Body: Difference between Open and Close
Wick / Shadow: High and Low lines
Meaning of colors
🟢 Green (Bullish) → Price has increased (Close > Open)
🔴 Red (Bearish) → Price has decreased (Close < Open)
Why are candlesticks important?
📊 Market trend can be understood
😌 It can be understood who has more strength between buyers and sellers
⏰ Helps determine entry-exit timing
🧠 Support–Resistance and Pattern can be identified
Some popular candlestick patterns
Doji → Indecision
Hammer → Potential trend reversal (can go up)
Shooting Star → Potential downward movement
Bullish / Bearish Engulfing → Signal of a strong direction change
Used in Crypto trading
Since you trade in BTC, ETH etc.—
1H / 4H → Day and Swing Trade
5M / 15M → Scalping
Using Candle + RSI, EMA, Volume together yields better results.