Ever wondered what those colorful bars mean in trading charts? They’re called candlesticks, and they tell the story of an asset's price movements. If you're serious about trading, mastering these patterns is a must!
So, what's a candlestick? It's a visual tool that makes price data easy to digest. Here’s what you need to know:
1. Body: This is the solid part of the candlestick, showing the difference between the opening and closing prices.
2. Wick (or Shadow): These are the lines extending from the body, representing the highest and lowest points during that time.
3. Color: It shows the market direction:
Green: Bullish, meaning the price went up. 📈
Red: Bearish, meaning the price went down. 📉
Candlesticks are your gateway to understanding market sentiment at a glance. Stay tuned for more insights in our next post! Got questions? Drop them below!