A candlestick chart visually represents an asset’s price movement, showing the open, close, high, and low within a set time frame, helping traders spot trends.
A candlestick chart has a body and wicks. The body shows open-close prices, wicks show highs and lows. Colours like green/red signal bullish or bearish trends.
To read candlestick charts, identify bullish/bearish candles, observe body & wick sizes for momentum & reversals & recognise patterns to predict stock trends.
Analyse candlestick charts by studying trends, patterns (like Hammer or Engulfing), body size, and wick lengths to gauge market sentiment and momentum.
Monitor key time frames, spot reversal patterns, combine volume with candlesticks, and watch for breakouts to make quick intraday trading decisions.