How to read candlestick charts 🕯
The various details on price charts, including candlesticks, are often not understood by many people. Today we will learn how to read candles that are literally everywhere in crypto.
Candlesticks are a visual representation of the size of price fluctuations. Traders use these charts to get information about where the price has been and how it changed 📊
Each candle has three parts:
1. The body.
2. Upper shadow.
3. Lower shadow.
A candle has four points of data:
1. Open – the first trade during the period.
2. High – the highest traded price.
3. Low – the lowest traded price.
4. Close – the last trade during the period.
Shadows show the lows and highs of the traded price:
🔴 If the upper wick on a red candle is short, then it indicates that the trading opened near the high of the day.
🟢 If the upper wick on a green candle is short, then it indicates that the trading closed near the high of the day.
📌 Save for later