๐ Candlestick Charts Explained (Simple & Clear)
A candlestick chart is one of the most important tools in trading. It shows how the price of an asset moves over a specific period of time.
Each candlestick represents one fixed timeframe.
๐น 1-hour chart โ 1 candlestick = 1 hour
๐น 1-day chart โ 1 candlestick = 1 day
๐น 1-week chart โ 1 candlestick = 1 week
๐ฏ๏ธ Parts of a Candlestick (OHLC)
Every candlestick is made up of four key prices, known as OHLC:
1๏ธโฃ Open
The first price at which the asset traded when the timeframe started.
2๏ธโฃ High
The highest price reached during that timeframe.
3๏ธโฃ Low
The lowest price reached during that timeframe.
4๏ธโฃ Close
The last price at which the asset traded when the timeframe ended.
๐ Bullish vs Bearish Candlesticks
๐น Green / Hollow candle (Bullish)
โก Price closed higher than it opened
โก Buyers were in control
๐น Red / Filled candle (Bearish)
โก Price closed lower than it opened
โก Sellers were in control
๐ง Why Candlestick Charts Matter
Candlesticks help traders: โ Understand market sentiment
โ Identify trends and reversals
โ Spot entry and exit points
โ Make decisions using price action
They donโt just show price โ they tell a story of buyers vs sellers.
๐ Key Takeaway
If you understand Open, High, Low, and Close, you understand the foundation of technical analysis.
Master candlesticks first โ indicators come later.
๐ฌ Which timeframe do you usually look at: 1H, 4H, or 1D?
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