What Is a Candlestick?
A candlestick represents price movement over a specific time period whether one minute, one hour, or one day. Each candle tells you four things: the opening price, the closing price, the highest price, and the lowest price during that period.
Anatomy of a Candle
Body: The thick rectangle between open and close prices
Wick (Shadow): The thin lines above and below the body showing high/low
Green Candle: Price closed higher than it opened (bullish)
Red Candle: Price closed lower than it opened (bearish)
Key Patterns to Know
Doji: Open and close are nearly equal — signals market indecision and potential reversal.
Hammer: Long lower wick, small body — signals potential bullish reversal after a downtrend.
Engulfing Pattern: A large candle completely "engulfs" the previous candle — strong reversal signal.
Morning Star: A three-candle bullish reversal pattern consisting of a large red candle, a small doji, and a large green candle.
How to Use This on Binance
On Binance's trading interface, click "Trade" → "Advanced" to access the full TradingView chart. Switch between timeframes (1m, 5m, 1h, 4h, 1D) to analyze patterns at different scales.
Conclusion
Candlestick reading takes practice. Start by observing patterns on daily charts before applying them to shorter timeframes. Always confirm patterns with volume before acting.