Candles, also known as Japanese candlesticks, are essential for traders who want to analyze price movements. They make it easy to visualize how the price of an asset changes over a given period.
How to read a candle?
Each candle consists of 4 important pieces of information:
Open: the price at the beginning of the period.
High: the highest price reached during the period.
Low: the lowest price reached during the period.
Close: the price at the end of the period.
Bullish candle vs bearish candle
Bullish candle: If the candle is green, it means that the price increased during the period — buyers took control.
Bearish candle: If the candle is red, it means that the price decreased — sellers dominated.
Why is it important?
Knowing how to read these candles helps you better understand what is happening in the market and make more informed decisions. It’s a simple yet powerful tool for tracking trends and anticipating future movements.
We have prepared a practical video guide to explain all of this in more detail. Click here to watch it.