Candlesticks are a powerful tool for investors and traders to analyse market trends and make informed decisions.
Candlestick charts are a visual representation of price movements, offering insights into the market sentiment and potential future trends.
Body
It represents the opening and closing price. These prices reflect the first price purchased and the last price sold on the timeframe of the candle.
Wicks
These are the thin lines extending above and below the body, representing the lowest and highest prices during the period.
Colour
Shows the direction of the price movements. A green candle indicates that the closing price was higher than the opening price. And the red candle indicates that the closing price was lower than the opening price.
By understanding the basics and practicing regularly, you can improve your investing decisions. However, it's important to combine candlestick analysis with other technical indicators.