📊 Candlestick Charts Explained (Simple & Clear)

A candlestick chart is one of the most important tools in trading. It shows how the price of an asset moves over a specific period of time.

Each candlestick represents one fixed timeframe.

🔹 1-hour chart → 1 candlestick = 1 hour

🔹 1-day chart → 1 candlestick = 1 day

🔹 1-week chart → 1 candlestick = 1 week

🕯️ Parts of a Candlestick (OHLC)

Every candlestick is made up of four key prices, known as OHLC:

1️⃣ Open

The first price at which the asset traded when the timeframe started.

2️⃣ High

The highest price reached during that timeframe.

3️⃣ Low

The lowest price reached during that timeframe.

4️⃣ Close

The last price at which the asset traded when the timeframe ended.

📈 Bullish vs Bearish Candlesticks

🔹 Green / Hollow candle (Bullish)

➡ Price closed higher than it opened

➡ Buyers were in control

🔹 Red / Filled candle (Bearish)

➡ Price closed lower than it opened

➡ Sellers were in control

🧠 Why Candlestick Charts Matter

Candlesticks help traders: ✔ Understand market sentiment

✔ Identify trends and reversals

✔ Spot entry and exit points

✔ Make decisions using price action

They don’t just show price — they tell a story of buyers vs sellers.

🔑 Key Takeaway

If you understand Open, High, Low, and Close, you understand the foundation of technical analysis.

Master candlesticks first — indicators come later.

💬 Which timeframe do you usually look at: 1H, 4H, or 1D?

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