What is candlesticks in trading for beginners

🕯️ Candlesticks....

Candlesticks in trading are a type of price chart used to represent the price movements of an asset (like a stock, cryptocurrency, forex pair, etc.) over a specific period of time. Each "candlestick" provides four key pieces of information:

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🔍 Parts of a Candlestick:
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1. Open Price – Where the price started during the time period.

2. Close Price – Where the price ended during the time period.

3. High Price – The highest price reached during that time.

4. Low Price – The lowest price reached during that time.




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📊 How to Read a Candlestick:

🔴 Bearish Candle (Price Went Down)

Open is higher than Close

Usually colored red or black


🟢 Bullish Candle (Price Went Up)

Close is higher than Open

Usually colored green or white



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🕯️ Candlestick Structure:

High
        │
    ┌───┐ ← Wick/Shadow (top)
    │ │ ← Body (thicker part)
    └───┘
        │
      Low

Wick (Shadow): Thin lines above and below the body showing the high and low prices.

Body: The thick middle part that shows the range between the open and close prices.



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📆 Timeframes:

Each candlestick can represent:

1 minute

5 minutes

1 hour

1 day

1 week

etc.


For example, on a 1-hour chart, each candlestick shows price movement during that one hour.


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📈 Why Candlesticks Are Useful:

They help traders spot patterns.

Identify reversals, trends, and market sentiment.

Used in technical analysis with patterns like:

Doji

Hammer

Engulfing

Shooting Star

and many more.

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High

        │

    ┌───┐ ← Wick/Shadow (top)

    │   │ ← Body (thicker part)

    └───┘

        │

      Low