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Imagine you are watching the price go up and down like a roller coaster. These candles tell you when it might be a good time to buy or sell, based on how the price has moved before.
Let's break it down with simple and clear examples so you can easily understand it.
What are Japanese candlesticks?
Japanese candlesticks are a graphical way of showing the price movement of a market, such as cryptocurrency. Think of them as a series of colored bars that show whether the price went up or down in a day (or whatever period you're looking at). Each candlestick has three important parts: